Oil prices steadied on Friday, the first trading day of 2026, after recording their biggest annual decline since 2020, as investors weighed fresh geopolitical risks against expectations that OPEC+ will maintain its current supply policy at a meeting later this week.
As of 21:13 ET (02:13 GMT), Brent Oil Futures expiring in March rose 0.2% to $60.97 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.2% to $57.55 per barrel.
Both contracts slipped nearly 20% in 2025, pressured by persistent concerns over global oversupply and uneven demand growth.
OPEC+ meeting ahead
Attention is focused on an OPEC+ meeting scheduled for Jan. 4, where the producer group is widely expected to stick with its decision to halt further output increases.
OPEC+ agreed late last year to pause planned supply hikes for early 2026 in an effort to stabilise prices after crude benchmarks suffered steep losses. Markets expect the group to reaffirm that stance, with little appetite to add more barrels into an already well-supplied market.
Geopolitical tensions provide support
Geopolitical developments provided some support to prices. U.S. President Donald Trump stepped up his campaign against Venezuela’s oil exports by imposing fresh sanctions on companies based in Hong Kong and mainland China.
The measures target firms and vessels accused of helping Caracas circumvent existing restrictions, raising concerns about potential disruptions to Venezuelan crude shipments.
Tensions between Russia and Ukraine also resurfaced over the New Year period, with both sides reportedly striking Black Sea ports and related infrastructure.
Last year’s slump in oil prices was driven largely by a supply glut, as OPEC+ unwound production cuts and non-OPEC producers maintained high output levels. Those factors outweighed repeated supply disruption risks from geopolitical tensions, keeping prices under pressure for much of the year.
Source: Investing