Oil prices rose on Friday due to fears of supply disruptions from Venezuela, although they remain on track for a weekly decline amid cautious market sentiment and optimism about the prospects for a peace agreement between Russia and Ukraine, UNN reports with reference to Reuters.
Details
Brent crude futures rose 43 cents, or 0.70%, to $61.71 a barrel by 03:52 GMT (05:52 Kyiv time), while U.S. West Texas Intermediate crude rose to $58.03 a barrel, up 43 cents, or 0.75%.
Both benchmarks fell by about 1.5% on Thursday.
The United States is preparing to intercept more vessels carrying Venezuelan oil after seizing a tanker this week, increasing pressure on Venezuelan President Nicolas Maduro, six sources familiar with the situation said on Thursday.
US prepares to seize new tankers with Venezuelan oil - Reuters12.12.25, 05:22 • [views_5336]
The seizure of the tanker by the US this week raised fears of supply disruptions.
After a sell-off amid expectations of easing supply pressure due to hopes for a peace agreement between Russia and Ukraine, a buying spree began to offset losses after the US seized a Venezuelan tanker.
"Peace talks between Russia and Ukraine will remain in focus next week and beyond," he said, noting that WTI oil prices could test the $55 level if a deal is indeed reached.
Both contracts lost more than 3% this week, reflecting overall market uncertainty, the publication writes.
ANZ Research analysts attributed the recent price drop to reduced risk appetite and subdued forecasts for the oil market.
The Federal Reserve's interest rate cut this week and Chairman Jerome Powell's comments, which were perceived as less hawkish than expected, increased uncertainty in financial markets about future US monetary policy.
Meanwhile, according to the latest monthly report from the International Energy Agency (IEA), global oil supply will exceed demand by 3.84 million barrels per day, down from the 4.09 million barrels per day surplus projected in November.
However, data from the Organization of the Petroleum Exporting Countries (OPEC) released on Thursday indicates that global oil supply in 2026 will largely match demand, contradicting forecasts from the IEA and other organizations of a significant oversupply.
OPEC forecasts near balance of oil supply and demand in 202611.12.25, 19:09 • [views_3006]
The U.S. Energy Information Administration reported a smaller-than-expected draw in crude oil inventories and a significant increase in fuel inventories last week.
On Wednesday, the leaders of Great Britain, France, and Germany held a phone call with U.S. President Donald Trump to discuss Washington's latest peace efforts to end the war in Ukraine, calling it a "critical moment" in the process.
On Thursday, drones struck an oil platform in the Caspian Sea for the first time, halting production at the facility owned by the Russian company Lukoil.