Oil prices edged higher on Monday as markets assessed the geopolitical fallout from a US military operation in Venezuela, even as concerns over global crude oversupply continued to cap gains.
West Texas Intermediate (WTI) crude for February delivery rose by one dollar, or 1.74%, to settle at $58.32 a barrel on the New York Mercantile Exchange. Brent crude for March delivery climbed $1.01, or 1.66%, to $61.76 a barrel on the London ICE Futures Exchange.
Traders remained focused on developments in Venezuela following the US raid and the seizure of President Nicolas Maduro, a move that has reintroduced political risk into an already fragile oil-producing region. Venezuela holds the world’s largest proven oil reserves, but production has remained severely constrained due to years of sanctions and underinvestment.
Analysts noted that while geopolitical risks supported prices in the near term, persistent concerns over ample global supply and subdued demand growth continue to weigh on the broader oil market outlook.
