Oil prices steady amid rising global tensions

December 02, 2025 (MLN): Oil prices held steady in early Asian trading on Tuesday, as investors evaluated escalating geopolitical tensions from Ukrainian drone strikes hitting Russian energy facilities to rising friction between the United States and Venezuela alongside mixed expectations for U.S. fuel inventory data.

Brent crude futures went down by $0.20, or 0.32%, to $62.97 per barrel, according to data reported by Mettis Global.

West Texas Intermediate (WTI) crude futures decreased by $0.11, or 0.19%, to $59.21 per barrel by [3:15 pm] PST.

Both Brent and WTI gained more than 1% on Monday, with WTI edging close to a two-week high.

Analysts at Saxo Bank noted that crude “maintained its upward momentum as traders monitored potential U.S. actions on Venezuela and assessed the damage caused at the Black Sea export terminal,” according to CNBC.

The Caspian Pipeline Consortium confirmed that shipments had restarted from one mooring point at its Black Sea terminal after a significant Ukrainian drone strike on November 29.

According to Russian outlet Kommersant, crude loadings resumed through Single Point Mooring 1 (SPM-1), while SPM-2 remains out of operation due to damage.

Ritterbusch and Associates said the latest military developments strengthen the case that “a near-term peace agreement is unlikely” and that tightness in diesel and gasoil supply could help lift the broader oil complex.

Ukrainian President Volodymyr Zelenskyy reiterated on Monday that Kyiv’s negotiating priorities remained protecting sovereignty and securing firm security guarantees. He added that territorial matters continue to be the toughest element of any future talks.

U.S. envoy Steve Witkoff is expected to brief Russian officials on Tuesday.

DBS energy strategist Suvro Sarkar said that “the only additional emerging factor” influencing the oil market is the increasing “noise coming out of Venezuela.”

He warned that while a large-scale conflict is unlikely, “the evolving situation could heighten internal instability and ultimately impact the country’s oil output and exports.”

U.S. President Donald Trump recently held discussions with senior advisers over Washington’s pressure strategy toward Caracas. Over the weekend, Trump declared Venezuelan airspace “entirely closed,” without offering further clarification.

OPEC+ on Sunday reaffirmed its modest production increase for December and confirmed a pause in further hikes during the first quarter of next year amid concerns over a potential oversupply.

“The group’s continued emphasis on coordination and supply discipline remains supportive for oil prices in the near term,” Sarkar added.

Market sentiment was tempered by uncertain expectations for U.S. stockpiles. A preliminary Reuters poll of four analysts suggested a decline in crude inventories but an increase in gasoline and distillate stocks for the week ended November 28.

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