Crude prices were little changed on Tuesday as energy markets continued to assess the fallout from Ukrainian drone attacks on Russian infrastructure and growing friction between the United States and Venezuela.
As of 0903 GMT, Brent crude slipped 19 cents (0.3%) to $62.98 per barrel, while U.S. West Texas Intermediate eased 12 cents (0.2%) to $20 per barrel.
Both contracts had climbed more than 1% on Monday, with WTI briefly touching a two-week high.
Ole Hansen, head of commodity strategy at Saxo Bank, said the latest price action reflects a fragile balance between geopolitical risks and expectations of excess supply.
He noted: “Besides that, the expected yet elusive supply glut remains a key focus preventing any meaningful bounce at this point.”
The supply backdrop was further complicated on Monday when the Caspian Pipeline Consortium confirmed that it had restarted exports from one of its Black Sea loading points following the significant Ukrainian drone strike on November 29.
Concerns rose again over the weekend after U.S. President Donald Trump said “the airspace above and surrounding Venezuela” should be treated as closed — a statement that injected fresh uncertainty given the country’s status as a major oil producer.
Diplomatic developments remain a key focus for traders as well.
According to Tamas Varga of PVM Oil Associates, “Focus is also on the Ukrainian peace talks, which might result in Russia increasing its crude oil and product exports once again, although this process is likely to be protracted.”
Ukrainian President Volodymyr Zelenskiy reiterated Monday that Kyiv is prioritizing sovereignty and strong security guarantees, while acknowledging that territorial issues remain the most difficult area in negotiations.
Meanwhile, Trump’s special envoy Steve Witkoff, accompanied by Jared Kushner, is expected to meet Russian President Vladimir Putin on Tuesday to discuss possible pathways toward ending the conflict.
Elsewhere, OPEC+ confirmed on Sunday that it will proceed with a modest production increase for December and pause further hikes in the first quarter of next year over concerns of a potential supply glut.
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