06.01.202600:52:14UTC+00Oil Holds Advance

WTI crude oil futures hovered around $58.2 per barrel on Tuesday following a volatile session on Monday that culminated in a 1.7% increase, spurred by escalating geopolitical tensions surrounding Venezuela. Investors are evaluating the effects of U.S. actions toward Venezuela on the global oil supply. Despite possessing the largest proven crude oil reserves in the world, analysts suggest that any disruptions to Venezuelan exports are unlikely to significantly influence prices, as the country represents only a minimal portion of the global supply. Years of underinvestment have reduced Venezuela's production to less than 1% of worldwide output, limiting its market impact. Concurrently, oil prices remain under pressure due to ample global supply. Notably, Saudi Arabia has reduced its official selling prices to Asia for the third consecutive month, indicating subdued demand conditions. Additionally, OPEC+ reaffirmed its commitment on Sunday to maintain current output levels through the first quarter.