**Crude Oil Prices Rise Amid Geopolitical Tensions and Production Cuts**
On Monday, January WTI crude oil closed at $56.78, up 0.51 (0.91%), while January RBOB gasoline rose by 0.0340 (1.99%). The increase is attributed to geopolitical risks in Venezuela and ongoing conflicts between Ukraine and Russia, alongside a declining dollar and a robust stock market. Significant support also came from Baker Hughes reporting a reduction in active US oil rigs to a 4.25-year low of 406.
Specifically, the situation in Venezuela escalated as President Trump announced a blockade of sanctioned oil tankers, further tightening supply. Additionally, Ukraine’s drone attacks have targeted Russian refineries and tankers, limiting Russia’s crude export capacity. OPEC’s recent announcements to pause production hikes in the first quarter of 2026 and revisions indicating a surplus in global oil markets contribute to the overall market dynamics. Current US crude oil production stands at 13.843 million barrels per day, slightly below the record high of 13.862 million.
