Oil prices rose slightly on Friday after the US increased economic pressure on Venezuelan oil supplies and launched airstrikes against Islamic State militants in northwestern Nigeria at the request of the government in Abuja, UNN reports with reference to Reuters.
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Brent crude futures rose 6 cents, or 0.1%, to $62.30 a barrel at 04:56 GMT (06:56 Kyiv time). US West Texas Intermediate (WTI) crude also rose 6 cents to $58.41.
Both Venezuela and Nigeria are major oil producers. Although Nigerian oil fields are predominantly located in the south of the country, the airstrikes have increased geopolitical risks.
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The White House has ordered its armed forces to focus on "quarantining" Venezuelan oil for at least the next two months, indicating that Washington is now more interested in using economic rather than military means to pressure Caracas.
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"Due to business closures for the Christmas holidays, market activity remained relatively low at the end of the year," said Tong Chuan, an analyst at Galaxy Futures. "The main factor affecting oil prices was supply disruptions."
Nevertheless, oil prices are heading for their steepest annual decline since 2020, as investors assess US economic growth and the risk of supply disruptions, particularly in Venezuela.
Brent and WTI oil prices are expected to fall by approximately 16% and 18% respectively this year, which would be the sharpest decline since the COVID-19 pandemic hit oil demand, as supply is expected to exceed demand next year.
Oil supplies from Kazakhstan via the Caspian Pipeline will be cut by a third in December, reaching their lowest level since October 2024, after a drone damaged facilities at the CPC's main export terminal, two market sources said on Wednesday.
The US Energy Information Administration is scheduled to release official inventory data on Monday, later than usual due to the Christmas holidays. This data should provide insight into demand in the world's largest oil consumer.
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