WASHINGTON (dpa-AFX) - Crude oil surged on Monday after the OPEC+ alliance reaffirmed its plans to pause production increases for early 2026, thereby allaying oversupply concerns.
In addition, Russia and Ukraine continue to mutually attack with no end in sight, with ongoing war along with a decrease in value of the U.S. dollar supporting oil on the upside.
WTI Crude Oil for February delivery was last seen trading up by $58.31 (or 0.99%) at $1.73 per barrel.
Despite intense month-long negotiations by the U.S. with Russia and Ukraine to convince both nations to end the war, so far, no breakthrough development has come up other than a few 'positive' statements by Ukrainian President Volodymyr Zelenskyy and the U.S. negotiators which were loaded with optimism.
As concerns about Russian oil flooding the market recede for the time being, with the sanctions imposed by the U.S. and the West still holding, crude prices moved higher.
Meanwhile, both the nations are continuing with their strikes on each other's territories.
Russia is forced to offer heavy discounts to purchasers.
India, the second largest buyer of Russian oil, continues to import from Russia to meet its demand despite President Donald Trump warning India that the U.S. would impose additional tariffs if it does not halt Russian oil purchases.
On Sunday, the eight-member OPEC alliance announced plans to stand by its earlier decision of November 2, 2025 to keep oil output unchanged and also reaffirmed pausing the production increments for February and March 2026.
However, the group skirted discussing anything about the political crises in several countries.
Experts view that the cartel's decision has averted the possibility of oversupply.
The U.S. dollar index was last seen trading at 98.28, down by 0.14 (or 0.14%) today.
On Saturday, in a dashing, strategic operation, termed 'Absolute Resolve,' around 150 U.S. aircrafts stormed into Venezuela, captured its President Nicolas Maduro and his wife, and flew them out of the country to put them for a trial in the U.S. on criminal charges.
Trump claimed that the U.S. will be 'running' Venezuela and administer its rich oil reserves until a judicial transition of power takes place. Trump has threatened the acting leadership under Delcy Rodriguez in Venezuela to cooperate with the U.S. or 'pay a big price.'
Trump's offensives have opened the door for American investments in Venezuela's oil industry.
Venezuela produces around 1 million barrels a day, an equivalent of roughly 1% of global supply.
Russia, Iran, and the U.N. have strongly condemned the swift and aggressive U.S. action to placate Maduro from power.
In addition, Trump warned Cuba and Mexico to curtail their illicit drug smuggling trades that cross into the U.S., indicating they could suffer the same fate.
Last month, Trump urged the Palestinian Hamas militant group to disarm themselves as committed by them to complete the phase one of Gaza Peace Accord or else there would be a hell to pay.
Trump also warned Iran not to attempt to resume its nuclear program, while Iran has not yet responded.
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