$60 Oil Is No Longer a Floor

Oil Market Overview - Brent crude oil prices are struggling to maintain the $60 per barrel mark, with market sensitivity to geopolitical risks diminishing [2] - The market has shown little reaction to geopolitical tensions, such as sanctions against Russia and attacks on oil tankers, indicating a desensitization to supply risks [2][4] U.S. Sanctions and Venezuela - The U.S. has implemented a complete blockade on sanctioned oil tankers entering and leaving Venezuela, following the seizure of the Skipper VLCC, while PDVSA's loadings remain around 800,000 barrels per day in December [3] Ukraine-Russia Conflict - Ukrainian drones have targeted a shadow fleet tanker used for Russian oil exports, resulting in significant damage to the vessel, yet this has not influenced oil prices significantly [4] Brazil's Oil Production - Brazil's oil production reached an all-time high of 4.03 million barrels per day in October, but a strike by the trade union FUP is impacting Petrobras' offshore platforms [5] Pemex and Foreign Investment - Pemex has awarded five out of eleven anticipated joint venture contracts to private companies, but weak bidding and limited foreign participation will only result in a modest output increase of 75,000 barrels per day [6] Israel and Egypt Gas Deal - The Israeli government has approved a $35 billion natural gas supply deal with Egypt from the Leviathan gas field, which had been delayed for over three months due to concerns over peace treaty violations [7] Coal Demand Trends - The International Energy Agency reports that global coal demand has plateaued at around 9.1 billion tonnes, with expectations of reduced consumption in China starting in 2026 [8]