Oil prices held steady on the first trading day of 2026 after recording their steepest annual decline since 2020. WTI held above $57/barrel (around $57.45 in Singapore morning), while Brent closed around $60.85/barrel. The market now awaits the OPEC+ meeting on January 4, led by Saudi Arabia and Russia, which is expected to continue its November decision to restrain supply increases.
Geopolitically, the Trump administration is tightening pressure on Venezuelan oil exports through sanctions on companies in Hong Kong and China, as well as on ships attempting to evade the measures; there was even encouraging news about the Bella 1 tanker, which prompted a Russian diplomatic response. Meanwhile, Russia and Ukraine are attacking each other's Black Sea ports and damaging infrastructure, increasing the short-term risk premium. However, the overriding threat remains a global oversupply. The IEA estimates a surplus of around 3.8 million bpd, potentially curbing price increases in the first forecast for 2026. (asd)
The oil price at the time of this analysis was $61.20.
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id