Crude Oil Prices Headed for Worst Year Since 2020

Crude oil prices rebounded this week after sliding to their lowest levels since February 2021, as renewed geopolitical tensions and thin holiday trading helped lift markets off recent lows, CNBC reported.

Prices rose for a fifth consecutive session on Tuesday, with Brent crude climbing above USD 62 a barrel. US benchmark West Texas Intermediate (WTI), which had recently slipped below USD 55, reclaimed the USD 58-a-barrel level.

Oil fell sharply last week amid optimism that a potential peace agreement between Russia and Ukraine could pave the way for more Russian crude to return to global supply chains. That sentiment has since faded, with fresh geopolitical developments reviving concerns over supply disruptions.

In the Caribbean, the United States has stepped up efforts to restrict crude exports from Venezuela, which accounts for less than 1% of global oil supply.

US authorities seized two Venezuelan oil tankers and warned they could intercept additional sanctioned vessels entering or leaving the country to cut off revenue to the government in Caracas.

Oil prices were further supported by Ukraine’s drone strike on Russia’s Volna oil terminal in the Krasnodar region, a major energy hub near the Crimean Bridge. The terminal plays an important role in Russian energy exports and military logistics.

Ukraine has also targeted vessels from Russia’s so-called “shadow fleet,” which are used to bypass Western price caps. The strikes have undermined hopes of a near-term peace agreement and raised the risk of tighter supply from alternative export channels.

Despite the recent rebound, oil prices remain sharply lower for the year. WTI crude is down about 19% so far in 2025, putting it on track for its worst annual performance since 2020.