Oil prices stable as Venezuelan supply disruptions balance surplus concerns

Oil prices fell on Monday as investors balanced supply disruptions linked to escalating U.S.-Venezuelan tensions with oversupply concerns and the impact of a potential Russia-Ukraine peace deal.

Brent crude futures were down 47 cents, or 0.77%, to $60.65 a barrel at 10:46 a.m. EST (1546 GMT), and U.S. West Texas Intermediate crude was trading at $56.85 a barrel, down 59 cents, or 1.03%.

Both contracts slid more than 4% last week, weighed down by expectations of a global oil surplus in 2026.

Venezuela's oil exports have fallen sharply since the U.S. seized a tanker last week and imposed fresh sanctions on shipping companies and vessels doing business with the Latin American oil producer, according to shipping data, documents and maritime sources.

The market is closely monitoring developments and their impact on oil supply, with Reuters reporting the U.S. plans to intercept more ships carrying oil from Venezuela following the tanker seizure, intensifying pressure on Venezuelan President Nicolas Maduro.

"The grind lower in oil prices and the achieving of month-to-date lows across the major futures complex last week might have seen more negative pricing if it were not for the upping of the ante by the United States with regard to Venezuela," said John Evans, an analyst with PVM.