Oil prices moved higher on Monday after the United States intercepted an oil tanker in international waters near Venezuela, heightening concerns over potential supply disruptions. At the same time, elevated tensions linked to Russia’s ongoing war in Ukraine continued to add a geopolitical risk premium to energy markets.
Brent crude futures rose by $1.31, or 2.17%, to $61.78 per barrel by 13:16 GMT. U.S. West Texas Intermediate (WTI) crude gained $1.25, or 2.2%, to trade at $57.77.
According to UBS analyst Giovanni Staunovo, markets are now reassessing the risk to Venezuelan oil exports due to the U.S. embargo, after previously showing little concern. Although Venezuelan crude represents roughly 1% of global oil supply, any disruption could still impact sentiment in a tight market environment.
Rising output from the United States and the OPEC+ alliance has so far offset supply risks elsewhere, keeping Brent prices near $65 per barrel during the second half of 2025. However, prices have softened in recent weeks amid growing worries about oversupply.
Oil markets have recently found support from developments near Venezuela, while the conflict between Russia and Ukraine continues to simmer in the background. This comes despite broader bearish conditions, said June Goh, an analyst at Sparta Commodities.
Over the weekend, the U.S. Coast Guard pursued another oil tanker in international waters near Venezuela. If successful, this would mark the second such operation in two days and the third within less than two weeks, according to officials.
The recent rebound in oil prices followed comments from Donald Trump, who announced a “total and complete” blockade of sanctioned Venezuelan oil tankers. This was compounded by reports of a Ukrainian drone strike on a Russian shadow-fleet vessel in the Mediterranean, said IG analyst Tony Sycamore.
Despite Monday’s gains, both Brent and WTI benchmarks declined by roughly 1% last week.
On the diplomatic front, U.S. special envoy Steve Witkoff said talks held in Florida between U.S., European, and Ukrainian officials focused on aligning positions aimed at ending the war in Ukraine. He described those discussions, as well as separate meetings with Russian negotiators, as productive.
However, a senior foreign policy aide to Russian President Vladimir Putin said that revisions made by European and Ukrainian officials to U.S. proposals had failed to improve prospects for a peace agreement.
