Brent and WTI rose 2% as supply concerns grew.
Oil prices rose after the Caspian Pipeline Consortium halted exports following a major drone attack, and tensions between the US and Venezuela fueled supply concerns. OPEC+ agreed to keep oil production levels unchanged for the first quarter of 2026.
Brent crude futures rose $1.26, or 2.02%, to $63.64 a barrel by 09:53 GMT. WTI crude rose $1.27, or 2.17%, to $59.82.
The Caspian Pipeline Consortium, which transports 1% of global oil, announced on Saturday that it had halted operations after a Ukrainian drone damaged its Russian Black Sea terminal. Late Sunday, loading operations resumed at the Russian port of Novorossiysk.
OPEC+ agreed in early November to pause production in the first quarter of 2026. This, coupled with growing concerns about a supply glut, slowed down efforts to regain market share. However, the market reacted positively to the news.
For some time, the focus has been on the oil glut. Therefore, OPEC+'s decision to maintain its production target provided some relief and helped stabilize expectations for supply growth in the coming months.
Brent and WTI crude oil futures closed lower for a fourth consecutive month on Friday, their longest decline since 2023, as rising global supply expectations impacted prices.
On Saturday, Trump focused on pressure on Venezuela, saying the airspace over and around Venezuela should be considered closed. This has plunged the South American country, a major oil producer, into new uncertainty in the oil market.
In Europe, increasing uncertainty around a Russia-Ukraine peace deal reversed the bearish sentiment of the past two weeks, when an agreement looked closer and raised the prospect of large volumes of Russian oil flooding the market.
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