Oil Prices Open 2026 Higher as Geopolitical Risk Rises

Core Viewpoint - Oil prices are experiencing a slight increase due to ongoing geopolitical tensions, despite having faced significant annual losses in 2025, marking the worst performance since 2020 [1][2]. Group 1: Price Movements - Brent crude oil is trading at $61.03 per barrel, reflecting a 0.30% increase, while U.S. West Texas Intermediate is at $57.59 per barrel, also up by 0.30% [1]. - Both major oil benchmarks fell nearly 20% in 2025, indicating a challenging year for the oil market [2]. Group 2: Geopolitical Factors - Tensions between Ukraine and Russia have escalated, with allegations of drone attacks on civilian and energy infrastructure, contributing to upward pressure on oil prices [3]. - Ukraine's President Zelensky reported over 200 drone attacks targeting power infrastructure, while Russia claimed drone strikes on its energy and industrial facilities [3]. Group 3: U.S. Sanctions Impact - The U.S. has imposed new sanctions on four companies and associated oil tankers involved in Venezuela's oil sector, further constraining oil exports from the country [4]. - These sanctions are forcing Venezuela's state oil company PDVSA to shut down wells in the Orinoco Belt due to limited storage capacity [5].