By Erwin Seba
HOUSTON, Dec 1 (Reuters) – Oil prices rose $1 a barrel on Monday following drone attacks by Ukraine, the closure of Venezuelan airspace by the United States, and OPEC’s decision to leave output levels unchanged in the first quarter of 2026.
Brent crude futures advanced $1, or 1.6%, to $63.38 a barrel by 9:14 a.m. CDT (1514 GMT). U.S. West Texas Intermediate crude gained 94 cents, or 1.61%, to $59.49 a barrel.
“Ukrainian drone attacks on Russian shadow fleet as well as a commitment by OPEC to maintain current production levels has the market in an optimistic state,” wrote Phil Flynn, senior analyst for the Price Futures Group, in a note. “This comes as global oil demand continues to rise despite the negativity that we continue to hear on the demand side of the equation.”
ATTACKS ON CPC TERMINAL BOOSTS PRICES
The Caspian Pipeline Consortium, which carries 1% of global oil, said on Saturday that one of the three mooring points at its Novorossiysk terminal had been damaged, halting operations. But Chevron, a CPC shareholder, said late on Sunday that loadings were continuing at Novorossiysk. Usually, two moorings are engaged in loadings, while one is used as a backup.
The attacks on the CPC export terminal drove oil prices higher, UBS analyst Giovanni Staunovo said.
They came as Ukraine stepped up its military operations in the Black Sea and hit two oil tankers, which were heading to Novorossiysk.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies initially agreed on a pause in early November, slowing a push to regain market share with looming fears of a supply glut.
LSEG senior analyst Anh Pham said the market was reacting positively to the news.
“For some time, the narrative has centred on an oil glut, so OPEC+’s decision to maintain its production target provided some relief and helped stabilise expectations for supply growth in the coming months.”
Brent and WTI crude futures settled lower on Friday for the fourth straight month, their longest losing streak since 2023, as expectations for higher global supply weighed on prices.
On Saturday, U.S. President Donald Trump said “the airspace above and surrounding Venezuela” should be considered closed, sparking fresh uncertainty in the oil market, as the South American nation is a major producer.
Trump on Sunday said he had spoken to Venezuelan President Nicolas Maduro but did not give details.
(Reporting by Erwin Seba in Houston, Additional reporting by Enes Tunagur in London, Helen Clark in Perth and Siyi Liu in Singapore, Shadia Nasralla in London; Editing by Kirsten Donovan, Sharon Singleton, Rod Nickel)
