Oil prices fell to their lowest level since October, following broad losses in stocks and other high-risk assets. Brent crude, seen as a global benchmark, fell below $62 a barrel, paring previous gains that reached 0.7%. The pressure from disappointing corporate earnings was outweighed by increased risks from rising tensions between Washington and Caracas. US forces intercepted and boarded the giant oil tanker in a dangerous escalation of tensions with Caracas as the Venezuelan government described the move as an “act of piracy”. Venezuela has the largest oil reserves in the world and exported about 586,000 barrels per day last month. Most of that went to China, although some of Chevron Corp’s production from the OPEC member country goes to the United States. The company said its operations are continuing as normal. Ukraine escalates attacks on Russian targets. Meanwhile, Ukraine attacked a tanker within the “Shadow Fleet” linked to Russia’s oil trade, at a time when the United States was pushing for a ceasefire between the two sides. The latest incident means there have been at least five attacks on ships with links to Russia since the end of last month. The rising geopolitical tensions come amid conditions that are under pressure for crude oil prices, as increased production from OPEC+ and the Americas is expected to overshadow demand growth, which could lead to a glut. Monthly reports from OPEC and the International Energy Agency are scheduled to be released later on Thursday, which could provide further insights into the supply and demand situation. Also read: Wall Street banks expect a further drop in oil prices in 2026. Geopolitical tensions support prices. Robert Rennie, head of commodities and carbon research at Westpac Banking, said: “The US seizure of a sanctioned ship off Venezuela, and Ukraine’s attack on another Russian shadow fleet ship in the Black Sea, should add more to the sanctions and war risk premium in the near term.” He added that “the large, growing glut will put pressure on prices in 2026,” and that Brent crude could remain in the current range between $60 and $65 a barrel. In a related context, US crude inventories fell by 1.8 million barrels last week, according to government data. Inventories rose in Cushing, Okla., after four weeks of declines, but levels at the West Texas Intermediate crude delivery point are still the lowest since 2007 for this time of year. (Prices have been updated to reflect market reality)
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