Brent crude moves higher amid geopolitical tensions
The front-month ICE Brent contract has gained by $2.05/bbl on the day, to trade at $62.09/bbl at 09.00 GMT.
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Upward pressure:
Brent crude’s price has moved higher as geopolitical concerns have rekindled in the global oil market following the detention of Venezuelan President Nicolás Maduro by US troops.
US President Donald Trump also confirmed that the US embargo on Venezuelan oil would remain in place.
Venezuela is one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC) and controls almost 17% of global oil reserves, or 303 billion bbls, Reuters reports.
“While the Trump administration has been taking a more hawkish stance against Venezuela in recent months, developments over the weekend have led to shockwaves around the globe,” remarked two analysts from ING Bank.
The outlook for Venezuelan oil production will hinge on the trajectory of US sanctions policy, according to market analysts.
The Trump-led US administration’s move “has potentially significant implications for the oil market,” ING Bank’s analysts added.
Downward pressure:
Ample global oil supply as the market moves into 2026 has capped gains in Brent crude’s price.
While recent developments in Venezuela and the unprecedented capture of its President by the US, have heightened geopolitical risk, market analysts warn that the possible return of Venezuelan barrels could add pressure to an already oversupplied market.
The concerns come as Trump said Washington would take control of the OPEC member.
“The reaction in oil prices following the US arrest of Venezuelan President Nicolas Maduro suggests the market is more focused on the potential for supply increases in the longer term,” ING Bank’s analysts added.
By Aparupa Mazumder
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