Geopolitical Shockwaves Push Oil Prices Higher Despite Demand Worries
Oil popped up and stirred the market on Wednesday, rising by more than 1.5% after U.S. President Donald Trump imposed a “total and complete” ban on the movement of U.S.-sanctioned oil tankers through Venezuela. Geopolitics was once more the main theme, just when markets thought things could not get more interesting.
By 07:30 GMT, Brent crude futures gained 87 cents, or 1.5%, to $59.79 a barrel, while U.S. West Texas Intermediate rose by 85 cents to $56.12. However, there is still a downside: prices remain stuck below the $60 threshold. So, is this a real revival or just a bounce driven by escalating tensions? Traders are keeping a close eye.
According To Experts: Why Crude Oil Prices Remain Under Pressure
Experts indicate that crude oil prices have not improved and will likely continue to do so, at least with some temporary rises. They highlight that prices have recently reached the five-year mark where they were not seen before, thanks to the progress in Russia–Ukraine peace talks and the poor state of the U.S. economy.
Besides, the peace talks have sparked speculation that sanctions on Russia may be lifted at an earlier date, thus causing an increase in the global market’s oil supply. On the other hand, demand projections have been adversely affected by the poor U.S. retail sales and ADP employment data. The temporary ban on the import of Venezuelan oil to the U.S. made market participants more optimistic and thus they started buying at prices below $60 a barrel.
However, experts caution that the production limit of Venezuela’s oil exports is still valid and that the overall price downside risk remains.
Venezuela Sanctions And Market Sentiment
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Oil prices hit near five-year lows amid hopes of eased Western sanctions on Russia.
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Trump’s blockade of sanctioned Venezuelan oil tankers shifted market sentiment.
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Bargain buying below $60 per barrel fueled a temporary rebound.
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Venezuela’s small export volumes keep broader downside risks intact.
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Markets remain cautious, closely watching Russia-Ukraine developments.
Crude Oil Price Support and Resistance Levels
| Parameter | Value (USD) | Value (INR) |
|---|---|---|
| Support | $54.50 – $55.15 | ₹4,940 – ₹5,000 |
| Resistance | $57.20 – $58.00 | ₹5,150 – ₹5,215 |
| Outlook | Volatile | Volatile |
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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