Oil prices remained stable on Friday, supported by stalled peace talks regarding Russia's war against Ukraine, although gains were offset by expectations of an oversupply, UNN reports with reference to Reuters.
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Brent crude oil prices fell by 7 cents, or 0.1%, to $63.19 per barrel by 12:55 GMT (14:55 Kyiv time). US West Texas Intermediate crude oil prices fell by 10 cents, or 0.2%, to $59.57 per barrel.
Throughout the week, Brent crude oil prices were generally stable, while WTI crude oil prices are expected to rise by approximately 1.7%, marking the second consecutive weekly increase.
"It was virtually unchanged today, and traded in a narrow range this week," said Tamas Varga, an oil market analyst at PVM. "The lack of progress in Ukrainian peace talks provides a supportive backdrop, but on the other hand, steady OPEC production acts as a bearish brake. These two opposing forces make trading seem quiet."
The market is also assessing the impact of a potential US Federal Reserve rate cut and tensions with Venezuela, which analysts say could lead to higher oil prices.
82% of economists surveyed by Reuters from November 28 to December 4 expect a 25 basis point interest rate cut next week. A rate cut would stimulate economic growth and energy demand.
"Looking ahead, supply factors remain in focus. A peace deal with Russia would bring more barrels to the market and likely reduce prices," said An Pham, a senior researcher at LSEG.
"On the other hand, any geopolitical escalation would lead to higher prices. OPEC+ has agreed to maintain production at current levels until early next year, which also provides some support to prices," he said.
Markets also continued to brace for a possible US military intervention in Venezuela after President Donald Trump said late last week that the US would "very soon" begin taking action to stop Venezuelan drug traffickers on land, the publication writes.
Rystad Energy noted in its memo that such a move could jeopardize Venezuela's 1.1 million barrels per day of oil production, which is mainly supplied to China.
This week's price increase was also driven by the failure of US talks in Moscow, which failed to achieve a significant breakthrough on the war in Ukraine, including an agreement to return Russian oil to the market.
These factors supported prices despite a growing supply surplus.
Saudi Arabia lowered January prices for Arab Light crude oil for Asian deliveries to a five-year low amid oversupply, according to a document seen by Reuters on Thursday.