Colombia’s Cocaine Surge Highlights Broader Geopolitical Risks for Energy Markets

Colombia’s entrenched role in the global cocaine trade, now accounting for more than two-thirds of worldwide supply, underscores persistent governance and security challenges that can ripple into broader commodity markets, including oil and gas. Escalating illicit activity and ongoing tensions in key producing regions raise the risk of disruption to Colombia’s legitimate energy sector, potentially affecting sentiment around benchmarks such as Oil – Brent Crude, Oil – US Crude, and Natural Gas. While the article’s focus is on narcotics production, investors may view Colombia’s security backdrop as one of several geopolitical variables that can influence risk premia and volatility in global energy pricing, particularly if instability affects infrastructure, transport routes, or policy continuity in the Andean region.

Over the past month, prices for Oil – US Crude have declined about 4.15%, while Oil – Brent Crude has fallen roughly 3.83%, reflecting softer demand expectations and ongoing macro uncertainty; both currently show a 1-day technical signal of Strong Sell and Strong Sell, respectively, suggesting near-term bearish momentum. Natural Gas has seen a sharper one-month drop of about 23.69%, pointing to pronounced weakness that may be tied to ample supply and seasonal factors, with a 1-day technical reading of Sell indicating ongoing pressure on prices. Investors can explore more updates, prices, and analysis across global markets at Commodities.