Oil prices edged up on the first day of trade in 2026 after last year posting their biggest annual loss since 2020.

Oil prices edged lower on the first day of trade in 2026 after registering their biggest annual loss since ‍2020 as investors weighed ‍oversupply concerns against geopolitical ‍risks including the war in Ukraine and Venezuela exports.

Brent crude futures dropped 10 cents on Friday to close at $60.75 a barrel, while U.S. West Texas Intermediate crude also fell 10 ‌cents to settle at $57.32.

Russia and Ukraine traded allegations of ​attacks on civilians on New Year's Day despite talks overseen by U.S. President Donald Trump that are aimed at bringing an end to the nearly four-year-old war.

Kyiv has been intensifying strikes against Russian energy infrastructure in ⁠recent months, aiming to cut off Moscow's sources of financing for its military campaign in Ukraine.

Elsewhere, the Trump administration's efforts to increase pressure on Venezuelan President Nicolas Maduro continued with Wednesday's imposition of sanctions on four companies and associated oil tankers that it said were operating in Venezuela's oil sector.

In the Middle East, a crisis between OPEC producers Saudi Arabia and the United Arab Emirates over Yemen has deepened after flights were halted at Aden's airport on Thursday. This came before a virtual meeting between the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and its allies on January 4.

Traders widely expect OPEC+ to continue its pause on output increases in the first quarter, said Sparta Commodities ‍analyst June Goh.

"2026 will be an important year on assessing OPEC+ decisions for balancing supply," ‌she said, adding that China would continue to build crude stockpiles ⁠in the first half, providing a floor for oil prices.