Brent oil prices remain above support levels as the market watches the Venezuela situation.
UKOIL – Daily Chart
The selling pressure has faded in oil for the moment, with the price elevated above the $60 support level. Some strong buying needs to come in above $67.00 to start creating bullish momentum.
U.S. President Donald Trump said on Sunday that the United States may look to start talks with Venezuelan President Nicolas Maduro, as a big U.S. military buildup continues in the Caribbean.
Senior White House officials held three meetings at the White House last week to discuss options for possible military action against Venezuela, Reuters said. The U.S. government has overseen 21 boat strikes in the area, which have killed more than 80 people. Oil prices could rise sharply if the U.S. takes heavier action.
But Venezuela has slipped down the list of the world’s top producers to number 16 under Maduro’s rule. That could limit the upside potential for crude oil in the coming weeks.
Analysts are focused on Russian exports in light of recent sanctions on the country. “The market focus (is) shifting to how Russian oil exports will evolve over the coming months,” UBS analyst Giovanni Staunovo said. “The market appears skeptical that Russia will struggle to export its oil barrels”.
Refinery margins have surged after attacks on Russia’s energy infrastructure, outages in Asia and Africa, and closures across Europe. Speculators had built up their biggest bullish wagers on European diesel last week since 2022.
Markets will also look to important U.S. jobs market data this week to see if it could impact supply and the U.S. dollar.
