WTI crude oil futures rose to around $57.7 on the first trading day of 2026, after posting their biggest annual decline in five years, as markets weighed upcoming OPEC+ talks and ongoing geopolitical developments. The cartel is set to meet virtually on January 4, with expectations that the group will maintain its November agreement to pause further production increases. Geopolitical developments remained a backdrop, as Washington stepped up pressure on Venezuela’s energy sector by targeting China and Hong Kong based firms and vessels allegedly involved in bypassing export restrictions. Separately, tensions between Russia and Ukraine flared over the New Year period, with reciprocal strikes hitting Black Sea port facilities and damaging key energy infrastructure. Elsewhere, EIA data showed that US crude oil inventories fell by 1.934 million barrels last week, marking the largest weekly draw since mid-November and exceeding market expectations for a 0.9 million-barrel decline.
