FX.co ★ Oil Steadies at Start of the Year

On Monday, the first trading day of 2026, WTI crude oil futures remained relatively stable, hovering around $57.4, following their most significant annual drop in five years. Market participants are focused on the forthcoming OPEC+ discussions and evolving geopolitical situations. The cartel is scheduled to conduct a virtual meeting on January 4 and is anticipated to uphold its November agreement to halt further increases in production. Meanwhile, geopolitical tensions continue to influence the energy landscape. The United States has intensified its stance on Venezuela's energy sector by targeting firms and vessels based in China and Hong Kong that are purportedly circumventing export sanctions. Additionally, the New Year's period witnessed escalating tensions between Russia and Ukraine, leading to mutual attacks on Black Sea port facilities and resulting in substantial damage to essential energy infrastructure. Analysts also pointed out that global supply and storage capacities remain sufficient, with the conclusion of holiday travel demand this week potentially exerting additional downward pressure on prices.