Oil prices ended Wednesday’s trading session slightly lower, as markets assessed the impact of ongoing geopolitical tensions in Ukraine and Venezuela on global crude supplies.
February futures for U.S. West Texas Intermediate crude closed at $58.35 per barrel, down 0.05%, while Brent crude futures for the same month fell 0.22% to $62.24 per barrel. It is noted that energy markets are closed today due to Christmas holiday celebrations.
U.S. crude has declined by 18% since the beginning of the current year, while Brent crude has fallen by 16%, amid concerns over slowing global demand and investors’ assessment of geopolitical volatility and its impact on supplies.
The decline in oil prices comes despite continued tensions in key production regions, where the situations in Ukraine and Venezuela are affecting export capacity. Meanwhile, markets are also experiencing economic effects related to global economic growth, interest rates, and the oil policies of OPEC+, which remain a significant factor influencing price stability.
Oil markets have seen significant volatility since the beginning of 2025. U.S. crude has faced sharp declines exceeding 18% due to expectations of weak demand and rising inventories in the United States, while Brent prices have fallen by approximately 16% due to global economic pressures and export restrictions from some producing countries, despite ongoing tensions in vital production regions.
Ukraine
Ukraine is a country in Eastern Europe with a rich history dating back to the medieval state of Kyivan Rus, which is considered a foundational predecessor for both Ukraine and Russia. It has experienced periods of independence, foreign rule, and, most recently, regained sovereignty with the dissolution of the Soviet Union in 1991. The country is known for its distinct cultural traditions, Orthodox Christian heritage, and significant agricultural and industrial regions.
Venezuela
Venezuela is a South American country with a history of indigenous cultures, Spanish colonization beginning in the 16th century, and independence achieved in 1811 under Simón Bolívar. It is known for its diverse natural landscapes, including the Andes Mountains, the Amazon rainforest, and Angel Falls, the world’s tallest waterfall. The nation’s modern history and economy have been heavily defined by its vast petroleum reserves.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, with its modern government established by the Constitution in 1789. Its history is marked by westward expansion, industrialization, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse cultural heritage, shaped by immigration and a blend of indigenous, European, African, and other global influences.
OPEC+
OPEC+ is an expanded alliance of oil-producing nations, originally formed in 2016, which builds upon the foundation of the Organization of the Petroleum Exporting Countries (OPEC) established in 1960. The group, which includes major producers like Russia, coordinates on oil production levels to influence global crude prices and stabilize the market. This cooperation represents a significant geopolitical effort to manage the world’s most crucial commodity.
