WTI Crude bounces up above $57.00 as geopolitical risks grow

The price of the US benchmark WTI Oil has retraced the decline observed during the Asian market session, bouncing from two-week lows near $56,00, turning positive on the daily chart, and hitting intra-day highs at $57.59 ahead of the US session opening.

Oil prices extended their decline earlier on Monday, following the US intervention in Venezuela and US President Donald Trump’s pledge to open up the Caribbean country’s Oil industry.

Initially, these comments heightened market concerns about an Oil glut, as Venezuela is estimated to hold 17% of global Oil reserves, according to data from the US Energy Information Administration (EIA).

Prices, however, have gradually returned to previous levels as markets come to terms with the fact that the renovation of an underinvested Venezuelan Oil industry will take years and that US companies might not find the incentive to invest billions of dollars in increasing global supply to, ultimately, lower prices.

Meanwhile, the OPEC+ organisation, which includes most of the world’s Oil crude producers, reached an agreement to keep output levels unchanged over the weekend, in an attempt to support price stability, following an 18% depreciation in 2025.