Oil price edges up in 2026! Debut after worst annual loss since 2020; here's all you need to know

Oil prices inched higher on the first trading day of 2026 after logging their steepest annual decline since 2020, as fresh geopolitical risks resurfaced in global energy markets.Brent crude futures rose 14 cents to $60.99 a barrel by 0146 GMT, while US West Texas Intermediate (WTI) crude gained 14 cents to $57.56 a barrel.The modest uptick came amid reports of Ukrainian drone strikes targeting Russian oil facilities, alongside tighter pressure on Venezuelan exports following fresh US sanctions. Russia and Ukraine traded accusations of attacks on civilians on New Year's Day, even as intensive talks overseen by US President Donald Trump continued in a bid to end the nearly four-year-old war, Reuters reported.Kyiv has stepped up attacks on Russia’s energy infrastructure in recent months, seeking to curb Moscow’s financing of its military campaign in Ukraine.Adding to supply concerns, Washington on Wednesday imposed sanctions on four companies and associated oil tankers operating in Venezuela’s oil sector. The US blockade is aimed at preventing sanctioned tankers from entering or leaving Venezuela, forcing state-run energy firm PDVSA to adopt extreme measures to avoid shutting refining units as residual fuel inventories pile up.Despite the early gains, oil prices remain under pressure.Brent and WTI ended 2025 with losses of nearly 20%, the sharpest annual fall since 2020, as oversupply worries and tariff concerns outweighed geopolitical risks.It also marked Brent’s third consecutive year of declines—the longest losing streak on record.