Oil News: Crude Oil Futures Jump on Supply Risk as Venezuela Tensions Push WTI Higher

WTI Pops as Supply Risk Takes Center Stage

February crude is ripping higher on Monday, and the tone feels different — buyers showed up early and haven’t backed off. The contract closed Friday above the short-term pivot at $55.87, and the market wasted no time pressing into the next pivot at $57.51.

Traders know the drill: a clean move through that level puts $58.07 back in play, with the big test waiting at the 50-day moving average, which currently sits near $58.59. That’s the ceiling everyone’s watching.

At 12:25 GMT, February WTI Crude Oil is trading $57.65, up $1.13 or +2.00%.

Oil Prices Forecast Turns on Venezuela Headlines

What’s driving the squeeze? Mostly short-covering and some fast-money buying after last week’s multi-month low at $54.89. But today’s trade has a clear catalyst: the U.S. stepping up action against Venezuelan tankers.

The Coast Guard is now pursuing what would be its third interception in less than two weeks, and the market is finally treating Venezuela as a genuine supply risk — not a theoretical one. With Venezuelan barrels making up roughly 1% of global supply, it’s small, but clearly not irrelevant.

Crude Oil News Today: Supply Fears Trump a Bearish Backdrop

This is still a fundamentally heavy market. U.S. production and steady OPEC+ supply have more than offset worries elsewhere, keeping Brent stuck near $65 for most of the back half of the year.

Prices have eased over the past month as oversupply concerns build, and sentiment hasn’t exactly been bullish.

Even so, the Venezuela story — plus tension around Russia’s war in Ukraine — is giving crude just enough of a spark to keep sellers cautious. Traders aren’t chasing the rally, but they’re also not standing in front of it.

Oil Prices Projections Complicated by Geopolitics

The geopolitical layer isn’t helping clarity. Reports of a Ukrainian drone strike on a Russian shadow-fleet vessel in the Mediterranean added another dose of risk over the weekend.

At the same time, diplomatic efforts in Florida between U.S., European, and Ukrainian officials were described as “productive,” though Moscow downplayed any progress. In other words, the market wants calm — and it’s getting anything but.

Bottom Line: Bulls Have an Opening, but They Need Follow-Through

WTI has room to stretch if buyers can punch through the $57.51 pivot with conviction and make a real run at the 50-day moving average resistance. Until that level breaks, this pop still looks like short-covering inside a broader downtrend.

The supply scare gives bulls a story, but they need actual follow-through. For now, the market leans cautiously bullish — with a geopolitical fuse that could ignite either side of the trade.

More Information in our Economic Calendar.