Oil prices rose during Asian trade on Monday, partially retracing last week’s losses, as concerns over potential supply disruptions driven by escalating tensions between the United States and Venezuela offset ongoing oversupply worries and uncertainty surrounding a possible Russia-Ukraine peace deal.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures climbed 33 cents or 0.5%, to $61.45 per barrel, while U.S. West Texas Intermediate crude rose 30 cents or 0.5%, to $57.74 per barrel.
Both benchmarks had declined by over 4% in the previous week.
Over the weekend, Ukrainian President Volodymyr Zelenskyy said he was prepared to drop Ukraine’s aspiration to join the NATO military alliance following five hours of talks with U.S. envoys in Berlin.
Negotiations are set to continue on Monday, with U.S. envoy Steve Witkoff saying that “a lot of progress was made”, although no further details were provided.
Despite hopes of a diplomatic breakthrough, risks to supply remain elevated. On Friday, Ukraine’s military said it had attacked a major Russian oil refinery in Yaroslavl, northeast of Moscow. Industry sources said the facility had suspended output following the strike.
Any eventual peace deal between Russia and Ukraine could lead to an increase in Russian oil exports, which are currently constrained by Western sanctions. However, traders remain cautious about the timing and scope of any such outcome.
Separately, tensions involving Venezuela added to market unease. Venezuelan opposition leader Maria Corina Machado on Friday vowed political change after leaving the country secretly to collect the Nobel Peace Prize.
The development followed heightened fallout from the Trump administration’s seizure of a Venezuelan oil tanker last week, further raising concerns about potential disruptions to crude supply.
