Oil prices dip as traders assess supply risks

Oil prices edged lower in early trading on Tuesday as markets weighed potential supply risks linked to Venezuela and Russia against expectations of adequate global supply.

Brent crude futures slipped 0.18 percent to $61.96 a barrel, while US West Texas Intermediate crude fell 0.22 percent to $57.88. The pullback followed gains of more than 2 percent in the previous session, when both benchmarks posted their strongest daily performances in weeks.

Prices had climbed after the United States said it may sell Venezuelan crude seized in recent weeks, or possibly use it to replenish strategic reserves, as part of Washington’s pressure campaign against Caracas. President Donald Trump has also ordered a blockade on sanctioned oil tankers entering and leaving Venezuela.

Analysts said that even if Venezuelan oil exports were halted in the near term, global markets would likely remain well supplied in the first half of 2026, though a prolonged disruption could tighten balances later in the year.

Meanwhile, renewed attacks between Russia and Ukraine around the Black Sea added to supply concerns. Russian strikes damaged Ukraine’s port facilities in Odesa, while Ukrainian drone attacks hit vessels and infrastructure in Russia’s Krasnodar region. Ukraine has also stepped up attacks on Russian-linked shadow-fleet tankers accused of bypassing sanctions.

Despite the geopolitical tensions, traders remained cautious, balancing near-term supply risks against forecasts of ample oil availability, leaving prices sensitive to any sustained disruptions.