Oil prices rose by more than 1% on Monday after a series of Ukrainian drone attacks, the closure of U.S. airspace over Venezuela, and OPEC's decision to keep oil production levels unchanged for the first quarter of 2026.

Brent crude futures settled at $63.17 per barrel, marking an increase of 79 cents or approximately 1.27%. Meanwhile, U.S. West Texas Intermediate (WTI) crude ended at $59.32 per barrel, up by 77 cents or about 1.32%.

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John Kilduff, partner at Again Capital, commented: "The market is extremely tense right now due to the potential disruption of Russian crude supplies." He noted that market participants are closely watching to see if the Russia-Ukraine deal will collapse.

Concerns about a possible conflict between the United States and Venezuela have somewhat faded in comparison to the ongoing focus on the war in Ukraine. Kilduff added: "I don't think anyone is particularly worried about losing supply from Venezuela."

Phil Flynn, senior analyst at Price Futures Group, stated that Ukrainian attacks combined with OPEC's production commitments were key drivers behind Monday morning’s price gains in New York trading.

"Ukrainian drone strikes on an unofficial Russian fleet, along with OPEC's commitment to maintain current production levels, have brought renewed optimism to the market," Flynn wrote in a morning note. He also pointed out that global oil demand continues to rise despite persistent concerns about weak demand forecasts.

The Caspian Pipeline Consortium-which transports around 1% of global oil-reported Saturday that one of its three mooring points at its Novorossiysk terminal had sustained damage, halting operations there temporarily. However, Chevron-a stakeholder in the consortium-announced late Sunday that loading operations at Novorossiysk were continuing as usual; typically two moorings are used for loading while one remains as backup.

Giovanni Staunovo, an analyst at UBS Bank, said that attacks targeting the CPC export terminal contributed to oil price increases.

The escalation came as Ukraine intensified its military actions in the Black Sea region and struck two oil tankers bound for Novorossiysk.

Meanwhile, OPEC and its allies initially agreed on a temporary pause earlier this November-slowing efforts aimed at regaining market share amid rising fears over ample supply.

An Pham, chief analyst at the London Stock Exchange Group (LSEG), remarked that markets are responding positively to these developments.

"For some time now," he explained, "expectations have been centered on abundant oil supply. Therefore OPEC+’s decision to maintain its production targets has provided relief and helped stabilize supply growth projections in coming months."

Both Brent and WTI futures closed lower last Friday for a fourth consecutive month-their longest losing streak since 2023-as expectations of increased global supply weighed on prices.

On Saturday, U.S. President Donald Trump declared that "airspace over Venezuela and surrounding areas" should be considered closed-a move which injected further uncertainty into oil markets given Venezuela’s status as a major producer. Trump later indicated on Sunday that he had spoken with Venezuelan President Nicolas Maduro but did not offer further details regarding their conversation.