Concerns about possible interruptions from rising U.S.-Venezuela tensions overcame lingering worries about oversupply and the implications of a possible peace accord between Russia and Ukraine.
As a result, oil prices increased on Monday, partially reversing last week's 4% decline. At 0055 GMT, Brent crude futures increased 25 cents, or 0.4%, to $61.37 a barrel, while U.S. West Texas Intermediate crude was up 23 cents, or 0.4%, to $57.67 per barrel.
Tsuyoshi Ueno, a senior economist at NLI Research Institute, stated that "tensions between Venezuela and the U.S. are escalating, raising concerns about potential supply disruptions, while peace talks between Russia and Ukraine have swung between optimism and caution."
"Still, with markets lacking clear direction, oversupply concerns remain strong and unless geopolitical risks escalate sharply, WTI could fall below $55 early next year."
Due to weaker crude prices and a stronger rouble, Russian state oil and gas revenue in December is expected to drop by almost half from a year earlier to 410 billion roubles ($5.12 billion), according to calculations made by Reuters on Friday.
Russia's oil production, which is now sanctioned by Western nations, may eventually increase as a result of a potential peace agreement.
As the shockwaves from the Trump administration's seizure of an oil tanker last week grew stronger, Venezuelan opposition leader Maria Corina Machado pledged political change on Friday after leaving the nation covertly to accept the Nobel Peace Prize.
According to shipping statistics, papers, and maritime sources, Venezuela's oil exports have drastically decreased following the seizure and new penalties on shipping firms and ships doing business with the Latin American oil exporter.
According to energy services company Baker Hughes on Friday, U.S. energy companies reduced the number of oil and natural gas rigs in operation last week for the second time in three weeks.
