By: Economy Middle east

Oil prices slipped slightly on Tuesday, easing after strong gains in the previous session, as rising tensions between the U.S. and Venezuela and strikes on Russian oil facilities raised concerns about potential global supply disruptions.

Market activity remained subdued ahead of the year-end holidays, with prices still weighed down by steep losses this year amid worries over weakening demand and an impending supply surplus.

By 5:11 GMT, Brent crude futures fell 10 cents, or 0.16 percent, to $61.97 a barrel, while U.S. West Texas Intermediate (WTI) crude eased 12 cents, or 0.21 percent, to $57.89 a barrel.

U.S. could sell seized Venezuelan oil

On Monday, Brent recorded its strongest daily gain in two months, while WTI notched its biggest advance since November 14. As crude markets move through the final weeks of 2025, oil prices have remained mostly muted. Although geopolitical developments have triggered brief rebounds at points during the year, the prevailing theme has been one of soft demand and excess supply. Overall, the outlook stays fragile, with structural supply pressures outweighing short-lived risk-driven rallies.

Markets remain cautious as traders balance geopolitical risks against expectations of abundant supply in early 2026, leaving oil prices vulnerable to any sustained disruptions.

On Monday, U.S. President Donald Trump said Washington could retain or sell oil it had seized off Venezuela’s coast in recent weeks, as part of his pressure campaign against Venezuela, which includes a blockade of sanctioned oil tankers entering or exiting the country.

Venezuela ranks as the world’s 12th-largest oil producer and holds the largest proven oil reserves globally. Any escalation in U.S. military action could disrupt the country’s oil exports, particularly affecting shipments to China, which is a key buyer of Venezuelan crude.

Russia-Ukraine tensions escalate

The Russia-Ukraine war further added a risk premium to oil prices this week after Kyiv launched a wave of attacks targeting a major Russian oil terminal, a pipeline and at least two vessels.

Russian forces struck Ukraine’s Black Sea port of Odesa late on Monday, damaging port infrastructure and a vessel in the second attack on the area in less than 24 hours. Meanwhile, a Ukrainian drone strike hit Russia’s Krasnodar region, damaging two ships and two piers and igniting a fire in a village, according to regional authorities.

Kyiv has also intensified attacks on Russia’s maritime logistics, targeting so-called shadow-fleet oil tankers used to circumvent sanctions imposed on Moscow over the nearly four-year conflict.

These strikes could further hamper Russian oil exports, which are already constrained by tough U.S. sanctions, while ongoing hostilities between the two sides have also reduced hopes for an immediate ceasefire.