Oil falls as supply offsets disruption concerns

Brent crude futures were down 50 cents, or 0.8%, to $60.26 a barrel

Oil prices fell on Monday as adequate global supplies offset concerns about supply disruptions due to Venezuela crisis.

Brent crude futures were down 50 cents, or 0.8%, to $60.26 a barrel at 0752 GMT, while U.S. West Texas Intermediate crude was 53 cents, or 0.9%, lower at $56.79 a barrel.

The key benchmarks were volatile in early Asian trade as investors assessed the political upheaval in OPEC member Venezuela and the potential impact on oil supply.

In a global market with plentiful oil supply, analysts said any further disruption to Venezuela’s exports would have little immediate impact on prices.

Kazuhiko Fuji, consulting fellow at Japan’s Research Institute of Economy, Trade and Industry, noted that U.S. strikes had not damaged the South American country’s oil industry.

Even if Venezuelan exports are temporarily disrupted, over 80% are destined for China, which has built up ample reserves, and alternative sourcing is unlikely to strain the market, Fuji said.

Venezuelan production could rise by a few hundred thousand barrels per day by the end of 2026, but further gains would require significant investments, Raymond James analysts said in a note.

Any meaningful recovery in Venezuelan output is likely to take considerable time, UBS strategist Giovanni Staunovo said.

The Organization of the Petroleum Exporting Countries and its allies, together called OPEC+, decided to maintain their output on Sunday.

Trump also raised the possibility of further U.S. military interventions in Latin America, and suggested Colombia and Mexico could face military action if they do not reduce the so-called flow of illicit drugs to the United States.