Global oil prices moved higher at the start of the week, driven by fresh geopolitical tensions, even as the market remains under pressure from concerns about excess supply.
On December 22, 2025, Brent crude rose to $61.33 per barrel, gaining 1.43% from the previous day. The increase extended gains recorded on Friday, giving prices short-term support.
Despite the daily rise, the broader picture remains weaker. Over the past one month, Brent prices have fallen 2.21%, and compared to the same period last year, prices are 15.55% lower. This shows that while prices can jump on news, the overall trend for the year has been downward.
The latest increase was largely driven by growing fears of supply disruptions. Tensions between the United States and Venezuela have intensified, with reports that the US is pursuing another vessel near Venezuelan waters. Washington has already seized two oil tankers this month, including one over the weekend, raising concerns that Venezuelan oil exports could be further restricted.
At the same time, developments in Eastern Europe have added to market anxiety. Ukraine reportedly struck a Russian oil tanker in the Mediterranean Sea for the first time, following earlier attacks on Russian energy facilities linked to Lukoil in the Caspian Sea. These incidents have heightened worries about oil shipments and infrastructure at a time when the war between Russia and Ukraine is still unresolved.
Diplomatic efforts continue in the background. On Sunday, US and Ukrainian officials described recent talks in Miami as “productive and constructive,” although no major breakthrough was announced. Even so, the conflict remains a source of uncertainty for global energy markets.
However, analysts note that these geopolitical risks are colliding with a bigger issue: supply. Oil markets are widely expected to remain oversupplied, with production levels staying high relative to global demand. This expectation is the main reason crude oil prices are still heading toward an annual decline, despite occasional price spikes caused by political tensions.
