Oil prices rebounded sharply, with Brent rising about 3.4% to near US$61.99 a barrel and WTI gaining around 3.2% to about US$57.76 at the time of writing.
Markets reacted to fresh geopolitical tensions around Venezuela and ongoing concerns over potential supply disruptions from Russia, Iraq and Iran.
Analysts say the rally reflects a risk premium driven by uncertainty, rather than any immediate change in physical oil supply.
Oil Surges on Supply Concerns and Geopolitical Moves
Oil prices climbed sharply on Thursday, reversing recent declines and hitting multi-week highs as traders weighed fresh geopolitical developments and supply risks. At the time of writing, Brent crude futures were up about 3.4%, settling at US$61.99 a barrel, while U.S. West Texas Intermediate (WTI) crude rose about 3.2% to US$57.76 per barrel — marking the strongest close for Brent since late December. Investor focus has turned to unfolding events in Venezuela, with foreign envoys and energy executives preparing to visit next week after Washington announced a significant oil deal and the provision of U.S. goods to the crisis-hit nation. Meanwhile, concerns linger over oil supply from key producers Russia, Iraq and Iran as markets grapple with potential disruptions.
Venezuela in the Spotlight
U.S. actions in and around Venezuela have added fresh uncertainty to the oil market. The United States recently seized two oil tankers linked to Venezuelan crude, including one under Russia’s flag, as part of a broader effort to control oil flows in the Western Hemisphere and pressure the Venezuelan government.
At the same time, Washington has signalled that U.S. and European oil companies could play a role in revitalising Venezuelan production — even as geopolitical tensions complicate the outlook for near-term crude output from the OPEC member.
Analysts See a Mixed Picture
Energy analysts note that current price gains largely reflect geopolitical risk premiums rather than immediate supply shortages, suggesting that longer-term fundamentals remain influenced by global oversupply concerns. Prices surged back toward levels seen before recent market moves tied to the U.S.’s dramatic capture of Venezuelan President Nicolás Maduro, underscoring how quickly sentiment can shift amid political shifts. The situation remains fluid, with investors closely watching U.S. political developments, potential sanctions changes, and OPEC policy decisions — all of which could dictate oil’s near-term trajectory.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
x
Daily Dose of Buy, Sell & Hold recommendations before the market opens.
Start Your 7 Days Free Trial Now!
We use cookies to help us improve, promote, and protect our services. By continuing to use this site, we assume you consent to this. Read our Privacy Policy and Terms & Conditions
Could Global Tension Push Oil Prices Even Higher?
Highlights:
Oil Surges on Supply Concerns and Geopolitical Moves
Oil prices climbed sharply on Thursday, reversing recent declines and hitting multi-week highs as traders weighed fresh geopolitical developments and supply risks. At the time of writing, Brent crude futures were up about 3.4%, settling at US$61.99 a barrel, while U.S. West Texas Intermediate (WTI) crude rose about 3.2% to US$57.76 per barrel — marking the strongest close for Brent since late December. Investor focus has turned to unfolding events in Venezuela, with foreign envoys and energy executives preparing to visit next week after Washington announced a significant oil deal and the provision of U.S. goods to the crisis-hit nation. Meanwhile, concerns linger over oil supply from key producers Russia, Iraq and Iran as markets grapple with potential disruptions.
Venezuela in the Spotlight
U.S. actions in and around Venezuela have added fresh uncertainty to the oil market. The United States recently seized two oil tankers linked to Venezuelan crude, including one under Russia’s flag, as part of a broader effort to control oil flows in the Western Hemisphere and pressure the Venezuelan government.
At the same time, Washington has signalled that U.S. and European oil companies could play a role in revitalising Venezuelan production — even as geopolitical tensions complicate the outlook for near-term crude output from the OPEC member.
Analysts See a Mixed Picture
Energy analysts note that current price gains largely reflect geopolitical risk premiums rather than immediate supply shortages, suggesting that longer-term fundamentals remain influenced by global oversupply concerns. Prices surged back toward levels seen before recent market moves tied to the U.S.’s dramatic capture of Venezuelan President Nicolás Maduro, underscoring how quickly sentiment can shift amid political shifts. The situation remains fluid, with investors closely watching U.S. political developments, potential sanctions changes, and OPEC policy decisions — all of which could dictate oil’s near-term trajectory.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au