Oil Prices Steady Near $60: What It Means for Investors and Businesses Amid Geopolitical Tensions
Abu Dhabi – Global oil markets have remained relatively stable despite renewed geopolitical tensions between the United States and Venezuela, with crude prices continuing to trade within a narrow range.
Although Venezuela possesses some of the world’s largest proven oil reserves, decades of mismanagement, underinvestment, and international sanctions have drastically reduced its production capacity. Consequently, the country currently contributes only a marginal share to the global oil supply.
Sam North, Market Analyst at eToro, noted, “Venezuela’s current oil output, now below 500,000 barrels per day, represents less than 1% of global supply. At these levels, its production has minimal influence on global oil prices, especially compared to historical peaks exceeding 3 million barrels per day.”
North further explained that even if recent diplomatic talks result in eased restrictions and allow more Venezuelan oil into the market, the short-term impact would be limited. “Rebuilding Venezuela’s oil sector would take years and require billions of dollars in investment before it can significantly affect global supply balances. Over the medium to long term, additional output from such large reserves could actually exert downward pressure on oil prices, particularly in an already well-supplied market.”
Despite ongoing political uncertainty, oil markets have largely absorbed geopolitical developments without significant disruption. Global supply remains comfortable, supported by healthy inventory levels and steady production from OPEC+, which has helped contain price volatility.
With oil prices hovering around USD 60 per barrel, motorists are unlikely to experience sudden increases in fuel prices due to current geopolitical tensions.
“At this stage, markets are responding more to supply data than to political events,” North said. “In the UAE, fuel prices are adjusted monthly based on international benchmarks like Brent crude and local distribution costs, meaning short-term geopolitical tensions rarely lead to immediate price changes at the pump.”
Unless there is a major disruption to global supply, oil prices are expected to continue being driven by market fundamentals rather than geopolitical headlines in the near future.
Special Analysis by Omanet | Navigate Oman’s Market
The geopolitical tensions surrounding Venezuela’s oil sector pose limited immediate risk to global and regional oil markets, given its current negligible production. For Omani businesses and investors, this underscores the importance of focusing on supply fundamentals and stable OPEC+ policies rather than geopolitical noise. Smart investors should consider the medium- to long-term implications of potential Venezuelan supply re-entry, which could add downward pressure on prices, emphasizing the need for diversification and strategic hedging in the energy sector.
