Crude Oil Surges as US Strikes Venezuela Facility and Ukraine Talks Stall

Global oil benchmarks rallied sharply on Monday, shaking off recent weakness as geopolitical tensions in South America and Eastern Europe reignited supply concerns. WTI Crude climbed over 2.7% to touch $58.30, while Brent Crude rose to $62.19.

Escalation in Venezuela

Prices spiked following confirmation from President Trump that US forces destroyed a “major facility” in Venezuela, marking a significant escalation from maritime interdictions to land-based strikes. While specific details remain sparse, the move suggests a more aggressive posture against the Maduro government, following the destruction of 30 vessels allegedly involved in illicit trade.

If confirmed as a systemic shift in US strategy, this introduces a new risk premium to the energy sector, potentially threatening Venezuelan output and export logistics.

Ukraine Peace Hopes Fade

Supporting the bullish sentiment in oil is the stalling of peace negotiations between Russia and Ukraine. Despite initial optimism, a stalemate over territorial control and security guarantees has dashed hopes for a quick resolution.

Analysts at Ritterbusch and Associates note that the lack of a diplomatic breakthrough maintains a risk premium of approximately $3 per barrel. Continued attacks on energy infrastructure by both Kyiv and Moscow are keeping supply jittery. Further upside in WTI toward the $60 psychological level is likely if the geopolitical risk matrix does not de-escalate in the coming week.