Oil prices opened Rise in 2026 in early Asian trading on Friday as renewed fighting between Russia and Ukraine and tighter U.S. sanctions on Venezuela’s oil sector offset concerns over weak demand and ample global supply.
Oil benchmarks posted modest gains in the first trading session of the year after ending 2025 with their steepest annual losses since 2020, when the COVID-19 pandemic crushed global energy demand.
Brent crude futures rose 0.30% to $61.03 a barrel, while U.S. West Texas Intermediate crude climbed 0.30% to $57.59 a barrel, according to market data from early Friday trading.
The advance follows a turbulent year for oil markets. Both Brent and WTI fell by nearly 20% in 2025, weighed down by slowing economic growth, high interest rates, and persistent oversupply from major producers.
Despite those pressures, prices found early support from escalating geopolitical tensions over the New Year, particularly linked to the war in Ukraine and its potential impact on energy infrastructure.
Crude Benchmarks Edge Higher in First Trading Session of the Year
Trading volumes were thin as markets reopened after the New Year holiday, amplifying the impact of geopolitical headlines on prices.
Analysts said the modest gains reflected caution rather than a shift in the broader outlook, with traders closely watching supply risks rather than betting on a sustained rally.
Global inventories remain comfortable, and demand growth for 2026 is still uncertain, especially in China and Europe, where economic momentum has yet to recover meaningfully from last year.
Still, even limited threats to supply routes or production facilities can move prices in the short term, particularly after a prolonged period of declines.
Ukraine-Russia Attacks Renew Fears Over Energy Infrastructure
Fighting between Russia and Ukraine intensified during the holiday period, with both sides accusing each other of targeting civilian areas and critical infrastructure.
Ukrainian President Volodymyr Zelensky said on Telegram that Russia launched more than 200 drones aimed at power infrastructure across seven regions. “More than 200 Russian attack drones were launched overnight,” Zelensky wrote, adding that energy facilities were among the targets.
Russian authorities, meanwhile, reported Ukrainian drone strikes on energy and industrial sites in several regions inside Russia, raising concerns about potential disruptions to fuel processing and transport.
While neither side reported major, lasting damage to Oil Prices Rise production, traders remained sensitive to any escalation that could threaten pipelines, refineries, or export terminals linked to global energy flows.
U.S. Sanctions on Venezuela Add Pressure Despite Ample Supply
Additional support for prices came from new U.S. measures targeting Venezuela’s oil sector, which remains under sweeping American sanctions.
Washington this week imposed sanctions on four companies and associated Oil Prices Rise tankers accused of operating within Venezuela’s restricted oil trade, according to U.S. officials. The move effectively blocks the sanctioned vessels from entering or leaving Venezuelan ports.
The restrictions are already affecting the state oil company PDVSA. The company has begun shutting in wells producing extra-heavy crude in the Orinoco Belt as storage facilities fill up and export options narrow.
Despite the near-term lift from geopolitical risks, analysts caution that the broader market remains constrained by high supply and uncertain demand.
For now, tensions in Eastern Europe and pressure on sanctioned producers appear to be the primary factors preventing Oil Prices Rise from sliding further after last year’s sharp losses.
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