Oil market currently volatile due to events in Venezuela, risks around Iran - Russian deputy PM

MOSCOW. Feb 2 (Interfax) - High volatility on the global oil market is caused by the events in Venezuela and the risks around Iran, Russian Deputy Prime Minister Alexander Novak said on Sunday.

"There is a lot of volatility and uncertainty on the market today caused by geopolitical factors, primarily the events that took place in Venezuela and the risks associated with Iran. After all, these are the countries, which are among the leading [oil] exporting countries and are OPEC members. As we know, the situation in the Strait of Hormuz is also tense. Around 30% of the world's oil is shipped in this direction, if we talk about sea transportation, and around 13% of petroleum products. Of course, all these risks are currently being taken into account by the market," Novak said in an interview with the Rossiya-24 (VGTRK) television channel.

The conformity to the OPEC+ deal in November and December was at a high level, he said.

The ministers of the eight OPEC+ countries involved in voluntary restrictions on oil production have decided at the end of their monthly meeting on Sunday to maintain a pause in oil production increments in March. Hence, quotas will be set next month at the level of those that were in effect in December, as previously planned.

A meeting of the OPEC+ Joint Ministerial Monitoring Committee (JMMC), which is co-chaired by Russia and Saudi Arabia, took place later. The ministers have reviewed oil production data for November and December 2025 at the meeting, noting the overall implementation of the agreements reached by the alliance countries. The meeting participants once again stressed the importance of achieving full conformity with production quotas, as well as repayment of compensation. The updated schedules from the violators were reviewed at the meeting.

Brent crude futures have been actively growing in recent weeks amid the uncertain situation around Venezuelan oil exports following the abduction of President Nicolas Maduro by the United States, as well as the escalation of the conflict between the U.S. and Iran. An attack on Iranian facilities could lead to disruptions of oil supplies from the country or to the blocking of the Strait of Hormuz.

Following the trading session on January 30, the price of March Brent futures on the London ICE Futures Exchange stopped at $70.7 per barrel, demonstrating the most active growth in a month since 2022.