Oil outlook turns bearish as Venezuela production boost and inventory builds pressure crude oil futures. Technical analysis shows key support level at risk.

Oil futures relinquished early gains with the market still weighing the implications of developments in Venezuela, while concerns about oversupply in 2026 remain.

Refined products also saw gains. The February RBOB contract advanced 3.73cts to $1.7318/gal, while the March contract was up 3.47cts at $1.7538/gal. The February ULSD contract climbed 3.35cts to $2.0902/gal, with the March contract up 3.2cts at $2.0827/gal.

Crude oil futures target breakout above 50-day moving average as Iran protests, Venezuela turmoil, and Russia-Ukraine tensions threaten global supply disruptions.

Investors look to safe-haven assets like gold and silver to limit risk from the ongoing political instability in Latin America.

While benchmark oil futures have largely shrugged off Nicolas Maduro’s downfall, the former Venezuelan leader’s ouster has reverberated through some of the less well-known corners of the market.

Crude oil futures traded higher on Friday morning as concerns over a potential increase in supplies from Venezuela eased after the US Congress introduced a bill that could limit US intervention in that country.

Crude oil futures dropped over 2% to ₹5,100 per barrel, reflecting weak global trends and easing supply concerns. The decline is influenced by US intervention in Venezuela and changing dynamics in the OPEC+ market.