World oil prices stabilized on the first trading day of 2026 after experiencing a sharp decline throughout last year. West Texas Intermediate (WTI) crude traded above US$57 per barrel, while Brent, the global benchmark, closed below US$61 per barrel. This price stability follows a weakening prior to the New Year holidays.

Market participants' attention is now focused on the OPEC+ meeting, which will be held virtually on January 4. Major countries such as Saudi Arabia and Russia are expected to maintain their previous decision to temporarily halt oil supply increases. This policy was taken to stem downward pressure on prices due to oversupply.

Geopolitically, tensions have escalated after the Trump administration tightened sanctions on Venezuelan oil exports. Several Hong Kong- and China-based companies, as well as several vessels, were sanctioned for allegedly violating oil trade restrictions. This move adds to uncertainty in the global energy market.

Over the past year, oil prices plummeted by around 20 percent due to concerns about oversupply. OPEC+ previously increased production, while production from competing countries also continued to rise. The International Energy Agency even estimated that the supply surplus could reach 3.8 million barrels per day this year, which would be a record high. (az)

Source: Newsmaker.id