Archive · 3 Jan 2026
Oil Prices Rise After Major 2025 Losses
Oil prices went up a little at the start of 2026 after a big drop in 2025.
This was the biggest drop since 2020.
Ukraine was attacking Russian oil places to stop Russia from making money for their war.
The U.S. also put sanctions on some companies in Venezuela to put pressure on their president.
These things made oil prices go up a bit, but they had been going down for a few years because there was too much oil and some countries put tariffs on it.
Venezuela said they are ready to talk to the U.S. about fighting drugs but don't like the U.S. military actions.
The U.S. says these actions are to stop drugs from coming into the country.
Oil prices rose on the first trading day of 2026 after a significant annual loss in 2025.
Ukrainian drones targeted Russian oil facilities, aiming to cut off Moscow's war funding.
The U.S. imposed sanctions on four Venezuelan oil companies and associated tankers.
Brent and WTI crude oils saw nearly 20% annual losses in 2025, the steepest since 2020.
Venezuela is open to negotiating with the U.S. on drug trafficking but criticizes U.S. military actions.
- Who
- Ukraine, Russia, U.S. President Donald Trump, Venezuelan President Nicolas Maduro, PDVSA
- What
- Oil prices edged up after a significant annual loss, with geopolitical tensions affecting supply
- When
- January 2, 2026, following events in 2025
- Where
- Global oil markets, with specific actions in Ukraine, Russia, and Venezuela
- Why
- Ukrainian drone attacks on Russian oil facilities and U.S. sanctions on Venezuelan oil sector
Venezuela
United States
US Sanctions and Military Actions
Venezuela
Venezuela views US sanctions and military actions as threats and intimidation aimed at forcing a government change and gaining access to its oil reserves.
United States
The US justifies its actions as necessary to combat drug trafficking and stem the flow of drugs into the United States, asserting an armed conflict with drug cartels.
- Brent Crude Futures
- $60.99 per barrel
- U.S. West Texas Intermediate Crude
- $57.56 per barrel
- Annual Loss for Brent and WTI
- Nearly 20% in 2025
- Longest Losing Streak for Brent
- Third straight year of losses
- Sanctioned Companies in Venezuela
- 4 companies and associated oil tankers
- Venezuela's Oil Reserves
- World's largest proven oil reserves
- US Military Strikes
- 35 known boat strikes, at least 115 people killed
Sources
Oil edges higher following biggest annual loss since 2020
Worst Annual Loss Since 2020! Oil Prices Edge Up In 2026 - Here’s What’s Driving The Move
Maduro open to US talks on drug trafficking, but silent on CIA strike
Precious metals kick off the New Year higher after a robust 2025 rally
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Dow closes higher on first day of 2026, still no Santa Claus rally
