Oil Prices Surge Amid Reports Of Potential U.S. Strike On Venezuela, Trump Denies

Oil prices experienced volatility following reports that the U.S. might conduct air strikes on Venezuela's military installations, which the Trump administration links to drug trafficking. Initial reports caused crude prices to rise, with Brent crude futures reaching around $65.06 and WTI near $61 per barrel, before prices eased after President Donald Trump denied the attack plans on social media. Market analysts noted the significant impact of these reports on oil prices, referencing Trump's previous similar denials before airstrikes on Iran. The U.S. has deployed a task force including the aircraft carrier Gerald Ford near Venezuela, signaling heightened military readiness. Despite this, factors such as a stronger U.S. dollar and weak Chinese factory activity, along with Saudi Arabia's potential price reductions for Asian buyers and planned OPEC+ output increases, weighed on the market, offsetting some of the geopolitical tensions. The White House emphasized its commitment to using all means to combat drug trafficking, but official confirmation of any strike was denied as of the reports.