Oil Rises on Ukraine Strikes And Worries Of Venezuela Invasion

Meanwhile, Ukraine drones hit the Caspian Pipeline Consortium: File Image/Pixabay

The Organization of the Petroleum Exporting Countries' (OPEC) faith in the current state of the oil market plus more Ukraine drone attacks on Russian oil assets were the main reasons two key benchmarks experienced a rise  in prices by over 1 percent on the first trading day of the new month.

As of 1514 GMT, Brent was up $1, or 1.6 percent, to $63.38 per barrel; West Texas Intermediate rose 94 cents, also 1.6 percent, to $59.49 per barrel.

Additionally, oil was supported by the perception in some quarters that the chronic worry over possible weakening global demand  was somewhat misplaced.

Phil Flynn, senior market analyst at Price Futures Group Inc., said in a note, "Global oil demand continues to rise despite the negativity that we continue to hear on the demand side of the equation."

OPEC over the weekend agreed to leave oil output levels unchanged for the first quarter of 2026, with the cartel restating its commitment to market stability amid a "steady global economic outlook and current healthy oil market fundamentals as reflected in low inventories."

While Ukraine drones over the weekend caused damage to moorings of the Caspian Pipeline Consortium linking Kazakh fields to Russia's Black Sea coast, concern over supply tightness was stoked by U.S. president Donald Trump, who warned that airspace should be considered closed over Venezuela – which many pundits took to mean that a military invasion was forthcoming.

Trump is expected to address the matter publicly later on Monday, which will presumably heavily influence trading in the upcoming session.

In other oil news on Monday, a tanker carrying Russian gasoil – part of that country's shadow fleet – was hit by multiple explosions off the coast of Senegal.

Ukrainian drones were again cited as the culprit, but the vessel was stabilized and placed under tow; this was the third tanker to be attacked in recent days.