Brent crude oil rose to $61.20 per barrel on January 2, up 0.57% from the previous day, as markets entered 2026 following the commodity’s largest annual decline in five years.
The first trading session of the year saw investors weigh upcoming OPEC+ talks scheduled for January 4, with expectations that the cartel will maintain its November agreement to pause further output hikes. The group’s production decisions remain central to global supply dynamics amid fragile market sentiment.
Geopolitical developments continued to influence the market. The United States intensified enforcement measures against China- and Hong Kong-based firms and vessels allegedly involved in circumventing Venezuelan export restrictions. Meanwhile, renewed Russia–Ukraine hostilities over the New Year period targeted Black Sea ports, damaging key energy infrastructure and adding to supply concerns.
US crude inventories also played a role in market movements. Data from the Energy Information Administration (EIA) showed a draw of 1.934 million barrels last week, the largest weekly decline since mid-November and more than double the market’s forecast of 0.9 million barrels, providing additional support to prices.
Despite the early gains, Brent remains below last year’s levels. Over the past month, the crude benchmark has fallen 2.35%, and is down 20.01% year-on-year, reflecting a combination of global oversupply concerns, muted demand growth, and macroeconomic uncertainty.
