Oil prices rise at start of 2026 after record drop - Reuters
Oil traders place high hopes on upcoming OPEC+ meeting (illustrative photo: Getty Images)
Oil prices began to edge higher on the second day of 2026 after experiencing the steepest drop in the past five years during the final months of 2025. Both Brent and US West Texas Intermediate showed gains, Reuters reported.
As of the morning of January 2, Brent rose to $61.20 per barrel. US benchmark West Texas Intermediate (WTI) increased to $57.76 per barrel. The rise came after a large-scale price decline not seen since 2020.
During 2025, Brent and WTI fell by nearly 20%. Prices declined amid US President Donald Trump's tariff wars, geopolitical risks, and oversupply in the oil market. However, the current increase may finally halt the three-year gradual decline in Brent and WTI prices.
The publication notes that the restrained upward movement in oil prices reflects a balance between short-term geopolitical risks and long-term fundamental market indicators. Among the influencing factors is a meeting of the OPEC+ oil-producing cartel scheduled for January 4.
Traders expect the OPEC+ meeting to decide to suspend oil production growth. This could potentially help balance market supply.
Another factor is China, which will continue to build up crude oil reserves in the first half of the year. This will provide a lower floor for oil prices. At the same time, the United States has recorded record growth in oil production, along with a decline in crude oil inventories, which could also affect prices.
According to media reports, Brent prices changed little in December 2025. Overall, however, they fell by 18%, marking the biggest decline since 2020. Prices fell due to geopolitical risks, oversupply, and tariff wars.
But as early as December 29, it was recorded explicitly that oil prices edged higher due to tensions in the Middle East and difficulties in peace negotiations between Russia and Ukraine. In fact, the slow price increase began on December 24 amid threats of supply disruptions from Venezuela.
