Oil prices rise on 12 December 2025 as Venezuelan supply concerns intensify

Oil prices climbed on 12 December 2025 as traders reacted to escalating tensions between the United States and Venezuela. The gains reflected growing concerns that political and legal actions could disrupt crude exports from Venezuela, one of the world’s major oil producers. At the same time, the wider market remains cautious due to mixed global supply and demand signals. On this key trading day, Brent crude, the global oil benchmark, and U.S. West Texas Intermediate saw noticeable upward movement even as weekly performance stayed under pressure.

Current Oil Price Movement

• Moderate Gains: On Friday, Brent crude rose about 0.7 % and WTI nearly 0.8 %, reflecting traders reacting to geopolitical tensions.
• Price Levels: Brent hovered near $61.73 per barrel, while WTI stayed around $58.05 per barrel at midday.
• Weekly Trend: Both benchmarks were still down for the week, sliding from recent multi-week lows.
• Market Sensitivity: Price spikes on specific news show how reactive the market is to supply risks and broader economic signals.

Venezuelan Supply Concerns

• Tanker Seizure: On 10 December 2025, U.S. forces seized the Venezuelan oil tanker Skipper off the Caribbean, citing sanctioned crude.
• Trader Reactions: Many tankers now avoid Venezuelan ports, raising fears of disrupted crude flows.
• Political Tension: Venezuela condemned the seizure as “piracy, accusing the U.S. of stealing natural resources.
• Supply Risk: Venezuela’s oil-dependent economy,  with crude making up over 90 % of exports, means any disruption can ripple through global markets.

Global Market Reactions

• Trader Moves: Oil markets reacted swiftly, with traders increasing positions in crude futures amid tighter supply concerns.
• Risk Premiums: Analysts noted the U.S. tanker interception lifted risk premiums on oil contracts.
• Global Factors: Optimism over a potential Russia-Ukraine peace deal eased fears of European supply shortages, limiting sharper price rises.
• OPEC Balance: Data from OPEC showed a close supply-demand balance heading into 2026, capping stronger rallies despite Venezuelan export constraints.
• Market Insight: Politics causes short-term volatility, but fundamentals like global supply and demand remain key drivers of oil prices.

Economic and Consumer Impact

Even moderate spikes in oil prices can affect daily life. Higher crude costs usually mean more expensive fuel for cars, trucks, and planes. This pushes up transport costs for both businesses and consumers. In large oil-importing countries, higher fuel prices can slow growth by raising inflation and leaving consumers with less to spend. Emerging markets feel the impact even more, as they rely heavily on imported fuels. For oil-exporting nations, higher prices can increase revenues, but political tensions and uncertainty may reduce long-term investment.

Conclusion

On 12 December 2025, oil prices rose as markets reacted to intensified Venezuelan supply concerns. The U.S. seizure of a Venezuelan tanker and the threat of further maritime interceptions have made traders nervous about future crude flows. At the same time, mixed signals from other parts of the world, such as potential peace talks and balanced global supply‑demand data,  have kept price gains in check.

We from the market watching community see that oil prices remain highly sensitive to geopolitical news, especially where supply sources are affected. For now, the story of Venezuelan crude and its ripple effects on global energy continues to unfold.

FAQS

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.