Dec 19, 2025 (MarketLine via COMTEX) --
Crude oil prices declined overall during the week as talks progressed to end the Russia-Ukraine conflict. Envoys from the US and Europe held multiple discussions with Ukraine over the past week to rework the peace framework that aligns with the countryaEUR(TM)s interests. The US envoys had interacted with Russia as well earlier this month to understand their expectations from the deal. These developments implied a likely halt in the conflict, which was on the verge of completing four years now, potentially bringing stability to energy exports from this critical region. Prices were also weighed down by faltering factory activity and retail sales in China. However, the fall in oil prices was somewhat limited by mounting supply risks tied to WashingtonaEUR(TM)s escalating pressure on Venezuela.
Some key factors that led to changes in crude oil prices this week are as follows:
Oil prices slid on Monday and Tuesday, weighed down by signs that Ukraine was willing to drop some of its earlier demand to reach a peace deal in its conflict with Russia. President Zelenskiy held detailed discussions with US representatives in Berlin, wherein he indicated that his country could stop pursuit of NATO membership if certain other guarantees mere met. Prices were also weighed down by faltering economic growth in China, which might reflect on its energy demand over the coming months. As per the country’s official data, industrial activity grew at its lowest pace since August 2024 last month, rising 4.8% on an annual basis. The country’s retail sales also witnessed a relatively small rise in November 2025, indicating a slowing economy. Elsewhere, crude oil exports from Venezuela reportedly dropped considerably in the past week on fears of US sanctions. This was after the US naval forces impounded an oil tanker loaded with Venezuelan crude on December 10, 2025.Oil prices rose on Wednesday, supported by simmering geopolitical tensions after the US threatened to block all sanctioned tankers loading or unloading at Venezuelan ports. Nevertheless, this development was unlikely to impact all crude exports from the country as certain vessels were already granted exemptions, including those chartered by the US oil major Chevron. Prices also received support from a weekly decline in the US commercial crude stockpiles. According to the US Energy Information Administration (EIA), crude inventory was down by 1.3 million barrels for the week ending on December 12, 2025.Oil prices increased slightly on Thursday as markets weighed possible new US sanctions on Russia and supply risks from a US blockade of the Venezuelan oil tankers. Reports indicated that the US is preparing additional sanctions on Russia’s energy sector if Moscow does not agree to a peace deal with Ukraine, though a White House official said no decision has been made by the President Trump on the same. Analysts said that new sanctions on the Russian oil could be a bigger threat to global supply than the Venezuela tanker blockade announced on Tuesday. The UK already expanded its Russia sanctions list on Thursday, including on the Russian oil company Tatneft. ING estimated the Venezuela blockade could disrupt about 600,000 barrels per day (bpd) of exports (mostly to China), while roughly 160,000 bpd to the US may continue, with Chevron shipments still departing under an existing authorization.Oil prices increased further on Friday after President Donald Trump told NBC News that he might consider military action against Venezuela, an OPEC member. Trump has intensified pressure on the Venezuelan President Nicolás Maduro, ordering sanctions enforcement that has included intercepting oil tankers off Venezuela’s coast following the seizure of a vessel last week. The US has also increased its military presence in the Caribbean and carried out lethal strikes on boats it says were smuggling drugs into the country—actions whose legal basis has been questioned and has drawn congressional scrutiny.
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COMTEX_471598627/2227/2025-12-28T05:14:01
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