Oil prices experienced a slight dip in early Asian trading on Monday, primarily due to plentiful supply in the global market. Brent crude futures decreased by 34 cents to $US60.41 a barrel by 2308 GMT. US West Texas Intermediate crude also saw a decrease, falling 41 cents to $US56.91 a barrel.
Political instability in Venezuela, an OPEC member, had raised concerns about potential disruptions to oil shipments. However, sources within state oil company PDVSA reported that recent US actions in Venezuela had not impacted the nation’s oil production and refining capabilities. This reassurance has helped to stabilise market sentiment, offsetting some of the upward pressure on prices.
The OPEC+ group held its monthly meeting on Sunday and decided to maintain current output levels. Analysts suggest that the current abundance of oil supply in global markets means that any further disruptions to Venezuela’s exports would likely have a minimal short-term impact on prices. The market’s focus remains on balancing geopolitical risks with fundamental supply and demand dynamics.
