Oil Jumps Over 2% as Ukraine Peace Prospects Fade and Yemen Tensions Rise

Oil prices climbed more than 2% on Monday as hopes for progress toward peace in Ukraine dimmed and fears of Middle East supply disruptions resurfaced. Brent crude rose $1.30, or 2.1%, to settle at $61.94 a barrel, while U.S. WTI gained $1.34, or 2.4%, to close at $58.08. The rally followed Russia’s accusation that Ukraine attacked President Vladimir Putin’s residence, prompting Moscow to reassess its stance in peace talks, though Kyiv denied the claim. Additional support came from rising tensions in Yemen, including Saudi airstrikes in Hadramout, which kept supply-risk headlines in focus. Analysts also pointed to strong Chinese seaborne crude imports and expectations of falling U.S. crude inventories, reinforcing the view that around $60 a barrel is a key floor for Brent.

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Venezuela Cuts Oil Output as US Blockade Forces Well Shutdowns

Venezuela has begun shutting oil wells in the Orinoco Belt after a US military blockade halted exports and exhausted storage capacity. State-run PDVSA started closures on Dec. 28 and plans to cut Orinoco production by at least 25% to about 500,000 bpd, sources said. The reduction equals roughly a 15% drop in Venezuela’s total oil output of 1.1 million bpd. Shutting wells is considered a last resort because restarting them is costly and operationally difficult, highlighting the severity of the impact on President Nicolas Maduro’s government. China remains Venezuela’s main oil buyer, while US sanctions imposed in 2019 were intensified this month with a blockade ordered by President Donald Trump.

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Chevron Continues Venezuelan Oil Deliveries to US Despite Maritime Blockade

At least two vessels chartered by Chevron Corp. have successfully unloaded Venezuelan crude at US ports despite the Trump administration’s partial maritime blockade. Chevron has completed discharge from the Searuby and is unloading Canopus Voyager, while another tanker, Nave Neutrino, also off-loaded Venezuelan oil on the US Gulf Coast, though its charter status is unclear. Three additional Chevron-chartered vessels are en route to the US and are expected to discharge cargoes in the coming days, Bloomberg data show. Chevron holds a US license allowing it to produce and export Venezuelan oil and has sold at least 10 cargoes for delivery in January. While Chevron’s ships are moving freely, foreign tankers remain stalled nearby as the White House directs US forces to focus for two months on quarantining Venezuelan oil to pressure President Nicolas Maduro.

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Weather and Full Storage Force Halt at Russia’s CPC Oil Terminal, Threatening Kazakh Output

Russia’s Caspian Pipeline Consortium (CPC) terminal plans to halt oil intake later Monday after bad weather prevented ship loadings and storage tanks filled up following a recent drone attack. The disruption threatens crude production in Kazakhstan, as the CPC pipeline carries about 80% of the OPEC+ member’s oil from fields stretching nearly 1,000 miles to the Novorossiysk port. Loading has been constrained because an attack in November damaged a jetty while maintenance left only one of three moorings operational, cutting output by about 10% earlier this month. Although Kazakhstan’s energy ministry said lost volumes could be recovered, repeated delays in restoring capacity and several days of expected bad weather raise the risk of prolonged disruptions. CPC shipped just over 1.3 million barrels a day in November and up to 1.7 million barrels a day at times this year, meaning outages can tighten European crude markets and affect tanker availability.

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Nigeria’s NNPC Seeks $2 Billion to Repair and Upgrade Oil Pipelines

Nigeria’s state-owned Nigerian National Petroleum Co. (NNPC) is in talks to secure about $2 billion in financing from infrastructure-focused firm Nexus Alliance to repair and upgrade pipelines damaged by theft and vandalism. The funding, expected early next year, would also be used to reduce oil leaks and improve the reliability of pipeline operations. The financing discussions are part of a broader refinancing push by NNPC, which has also held talks with lenders based in Saudi Arabia. NNPC aims to raise oil production to at least 1.8 million barrels per day, expand gas output, and attract $30 billion in investment by 2027, with half of that targeted by 2026. The company is also pursuing longer-term plans for an initial public offering by improving transparency and accountability.

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Salvage Operation Prevents Grounding of Disabled VLCC in South China Sea

Salvors successfully stabilised a fully laden 319,000-dwt VLCC, the Djibouti-flagged Njord (built 2003), after it suffered a catastrophic main engine failure in the South China Sea and began drifting in congested waters. The incident occurred as early as Dec. 10, leaving the tanker at imminent risk of grounding or collision, and was later highlighted by China’s Sansha Maritime Safety Administration and reported by TradeWinds. UK-based risk management firm Vanguard Tech coordinated the response, working with Seagull Offshore to tow the vessel amid heavy weather, high traffic density and mechanical uncertainty. Over a three-week operation, the tanker was stabilised offshore, enabling repairs to be conducted at sea before further escorted movements. The vessel was ultimately returned to operational control without injuries, pollution, or secondary incidents, underscoring the importance of early risk detection and coordinated salvage efforts.