Brent crude oil prices edged lower on Tuesday, with futures slipping to $61.60 a barrel, as traders weighed US policy moves toward Venezuela against signs of oversupply and weak global demand.
Brent was down 0.26% on the day, extending a softer trend seen in recent weeks. Prices have fallen 1.43% over the past month and are down more than 20% from a year ago, according to trading on contracts for difference tracking the benchmark.
The decline followed a volatile session on Monday, when Brent settled 1.7% higher. That rebound was short-lived as investors reassessed the potential impact of any disruption to Venezuelan oil exports.
Although Venezuela holds the world’s largest proven crude reserves, analysts say its influence on global supply is limited. Years of underinvestment have reduced production to less than 1% of total global output, meaning any supply shock is unlikely to materially tighten the market.
Some analysts also note that Venezuelan production could eventually rise if political stability improves and if the United States succeeds in encouraging new investment in the country’s energy sector. Such a recovery would add barrels to a market already facing excess supply.
Elsewhere, Saudi Arabia cut its official selling prices to Asia for a third consecutive month, a move widely seen as a signal of weaker demand in the region. At the same time, OPEC+ has kept its plan to pause output increases in the first quarter, citing concerns about a supply surplus and subdued consumption growth.
With demand growth muted and supply risks limited, analysts say oil prices are likely to remain under pressure in the near term.
