Brent futures rose 8 cents, or 0.1% to $63.42 a barrel, while U.S. West Texas Intermediate crude fell 13 cents, or 0.2%, to $58.99.
On Friday, both crude benchmarks closed at their highest levels since December 5 on worries that Iran, one of the biggest oil producers in the Organization of the Petroleum Exporting Countries, could reduce exports.
Iran said on Monday it is keeping communications open with the U.S. as President Donald Trump weighed responses to a deadly crackdown on nationwide protests, which pose one of the stiffest challenges to clerical rule since the 1979 Islamic Revolution.
Trump is expected to meet senior advisers on Tuesday to discuss options for Iran, a U.S. official told Reuters.
VENEZUELA SET TO RESUME OIL EXPORTS SOON
Venezuela is expected to resume oil exports soon following the ouster of President Nicolas Maduro, as Trump said last week the government in Caracas is set to hand over as much as 50 million barrels of oil subject to Western sanctions to the U.S.
That has set off a race among oil companies to find tankers and prepare operations to ship the crude safely, four sources familiar with the operations said.
RISK OF SUPPLY DISRUPTION ELSEWHERE
Investors are also watching the risk of disruptions in supply from Russia, as Ukraine’s attacks have targeted its energy facilities, and the prospects of tougher U.S. sanctions on Moscow’s energy.
In Azerbaijan oil exports dropped to 23.1 million tonnes in 2025 from 24.4 million tonnes in 2024, the energy ministry said on Monday.
Russia and Azerbaijan are both members of OPEC+, which includes OPEC and allied producers.
In Norway, the government said on Monday it will present a policy document to parliament next year on the future of the oil and gas industry, including companies’ access to exploration acreage.
“The oil and gas industry is crucially important for Norway, and should be developed, not phased out,” Norway’s Prime Minister Jonas Gahr Stoere said in a speech.
U.S. bank Goldman Sachs said in a note that oil prices are likely to drift lower this year as new supply becomes available and creates a market surplus, although geopolitical risks tied to Russia, Venezuela and Iran will continue to drive volatility.
US INTEREST RATES
In the U.S., the Trump administration renewed its attacks on the Federal Reserve, adding to concerns in the markets about the central bank’s independence.
The administration to indict Fed Chair Jerome Powell over his Congressional testimony on a renovation project, which he called a “pretext” to gain more influence over interest rates that Trump, since he took office a year ago, has pressed Powell to cut sharply.
Lower interest rates could boost economic growth and oil demand by reducing consumer costs, which is politically popular, but could also make it harder for the central bank to respond to a possible future rise in inflation.
Central banks raise and lower interest rates to keep inflation in check.
Reporting by Scott DiSavino in New York, Stephanie Kelly and Enes Tunagur in London and Florence Tan and Siyi Liu in Singapore; Editing by Bernadette Baum, Sharon Singleton and Barbara Lewis – Reuters
This article was originally posted at sweetcrudereports.com
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