Crude oil prices have declined amid risk-off sentiment impacting global markets. ANZ reports that OPEC’s indication of a more balanced supply-demand outlook for 2026 has reversed prior expectations of tighter market conditions. OPEC now anticipates needing to produce an average of 43 million barrels per day next year to maintain market equilibrium. This adjusted outlook occurs despite OPEC+ recognising fragile conditions and agreeing to suspend production increases in the first quarter of 2026. OPEC is an intergovernmental organisation of 13 countries that coordinates and unifies the petroleum policies of its member countries. ANZ is a banking and financial services company.
Market pressures have also intensified due to escalating tensions between the United States and Venezuela. Recent actions by US forces include the interception and seizure of a sanctioned oil tanker off the Venezuelan coast. Reuters reports that the US is preparing to intercept further vessels carrying Venezuelan crude oil. The US Treasury’s Office of Foreign Assets Control has sanctioned six additional tankers and their affiliated companies, increasing the stakes.
These enforcement measures could potentially disrupt up to 560,000 barrels per day of Venezuelan crude exports. Shippers are likely to exhibit increased caution in loading cargoes as the risk of sanctions escalates, further contributing to market instability.
Brent Crude experienced a decline of 1.2 per cent, settling at $US61.48 per barrel.
