Oil falls on Monday

Oil prices fell on Monday as ample global supply offset concerns about potential disruptions linked to political developments in Venezuela. Brent crude slipped 50 cents to $60.26 a barrel, while US West Texas Intermediate (WTI) fell 53 cents to $56.79.

Markets remained volatile as investors assessed the political situation in OPEC+ member Venezuela and its possible impact on oil exports. Analysts said any temporary disruption would have a limited effect, noting that over 80 per cent of Venezuelan crude is destined for China, which has substantial reserves.

Venezuelan production could increase by a few hundred thousand barrels per day by the end of 2026, but larger gains would require significant investment, analysts said. Any meaningful recovery in output is expected to take considerable time.

OPEC+ decided to maintain output, keeping global supply ample despite geopolitical risks in the region. Analysts are also monitoring Iran after U.S. warnings over its internal unrest, adding to tensions in key oil-producing regions.

Attribution: Reuters