Oil Prices Rise More Than 1 Percent As Geopolitical Tensions Shape Market Sentiment
Global oil benchmarks advanced more than 1 percent as traders assessed stalled diplomatic efforts over Ukraine and fresh economic signals from China.
Brent crude climbed above 61 dollars a barrel, while West Texas Intermediate approached 57 dollars, extending modest gains despite broader market uncertainty.
US attempts to broker an agreement between Kyiv and Moscow produced no breakthrough, leaving core disputes unresolved and adding to geopolitical unease.
Donald Trump stated that significant progress emerged from weekend talks with Volodymyr Zelensky at Mar a Lago, noting that further discussions are expected.
Market observers pointed out that oil remains set for a fifth consecutive monthly loss in December, marking the longest stretch of declines in more than 2 years.
Concerns about oversupply have intensified following increased output from OPEC plus members and producers outside the alliance.
Geopolitical flashpoints ranging from Venezuela to Nigeria have helped slow the pace of the recent downturn in prices.
Analysts highlighted that no tangible progress has been made on Ukraine, with the status of Donbas still among the most contentious sticking points.
China pledged continued economic support for next year and laid out plans to expand its fiscal and tax framework in 2026, signaling sustained government involvement.
The worlds largest oil importer faces mounting pressure from an ongoing property market crisis and external challenges including its trade tensions with the US.
Beijing’s steady accumulation of strategic petroleum reserves is expected to help absorb part of the global surplus.
US operations in Venezuela escalated recently with a partial naval blockade and a heightened military presence, drawing international attention.
Trump claimed that a major facility linked to narcotics operations had been neutralized, according to reporting by the New York Times.
