Global oil prices have fallen to $61 per barrel amid instability in Venezuela, down from over $62 per barrel. The South American nation’s 303 billion barrels of proven oil reserves, about 17% of the global total, continue to weigh on market sentiment.

 

 

 

 

Analysts suggest that prices could drop further below $60 per barrel if tensions between the United States and Venezuela persist.

Meanwhile, OPEC+’s recent decision to pause production increases has yet to significantly influence the market. On January 4, 2026, eight OPEC+ countries confirmed they would hold back production increments for February and March due to seasonal factors.

 

 

 

Petroleum economist Prof. Wumi Iledare said the move signals caution rather than crisis and reflects a strategy to avoid volatility

 

 

 

 

 

“The key message is flexibility. The 1.65 million barrels per day voluntary cuts can be restored gradually, in part or in full, depending on market conditions. Low inventories and a steady global economic outlook suggest a broadly balanced oil market,” he explained.

 

 

 

OPEC noted that the participating countries “reiterated that the 1.65 million barrels per day may be returned gradually, in part or in full, and confirmed their intention to fully compensate for any overproduced volume since January 2024.”