Oil prices held steady with concerns about geopolitical risks from attacks on Russian facilities
Oil prices held firm in early trading on Tuesday as market participants assessed the risks from Ukraine's attacks on Russian energy facilities, escalating US-Venezuela tensions, and mixed expectations for US fuel supplies.
Brent crude futures rose 7 cents, or 0.1%, to $63.24 a barrel at 04:27 GMT. WTI crude rose 10 cents, or 0.2%, to $59.42 a barrel.
Both indices gained more than 1% on Monday, with WTI trading near a two-week high.
Oil held onto gains as investors watched Trump's actions against Venezuela and assessed the damage to Russia's Black Sea terminal.
The Caspian Pipeline Consortium announced on Monday that it had resumed oil shipments from a mooring point at its Black Sea terminal following a major Ukrainian drone attack on November 29.
Russia said on Monday that oil shipments had resumed from Single Point Mooring Point 1 (SPM 1), but that SPM 2 had been damaged.
The military action supports the view that a peace agreement is unlikely in the near future.
US Envoy Steve Witkoff is expected to brief the Kremlin on Tuesday.
The turmoil surrounding Venezuela is another factor that further fuels concerns. While the likelihood of a full-scale conflict is low, ongoing events could destabilize the country internally and threaten its oil production and exports.
Trump said on Saturday that the airspace over and around Venezuela should be considered "completely closed," but did not provide further details.
On Sunday, OPEC+ reiterated its expectation of a small oil production increase for December and a pause in increases in the first quarter of next year due to growing fears of oversupply. OPEC+'s rhetoric on supply management and discipline in the near term continues to support oil prices.
Meanwhile, mixed outlooks for US crude oil and refined product inventory data put slight pressure on prices. Analysts predict that crude oil inventories fell in the week of November 28th, while product inventories rose.
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