Singapore – Oil prices opened the first trading sessions of 2026 higher. They are attempting to recover from their worst annual performance since 2020. Rapid geopolitical developments have raised concerns. These concerns relate to the stability of global supplies. Prices were supported by recent events. Russian oil facilities were attacked by Ukrainian drones. The US also tightened restrictions on Venezuelan oil exports.
Brent crude futures rose 42 cents. It reached $61.27 per barrel. US West Texas Intermediate crude also climbed by the same amount. It recorded $57.84 per barrel. Both Brent and WTI crude posted annual losses of nearly 20% in 2025. This was their largest decline in five years. Markets prioritized concerns over supply gluts. Tariffs also impacted global demand. This occurred despite ongoing geopolitical tensions. This marks the third consecutive year of annual losses for Brent crude. It represents its longest losing streak.
Regarding US supplies, the Energy Information Administration reported new data. US oil production hit a record high of 13.87 million barrels per day in October. Crude inventories fell last week. Gasoline and distillate stocks rose. This increase was driven by rising refinery activity.