Oil Prices Edge Higher as Markets Assess Supply Risks

PUKMEDIA

Oil prices.

Oil prices rose slightly on Friday as markets weighed potential supply risks following increased U.S. economic pressure on Venezuelan oil shipments and airstrikes against Islamic State militants in northwest Nigeria carried out at the request of the Nigerian government.

According to Reuters report, Brent crude futures gained 6 cents, or 0.1 per cent, to $62.30 per barrel by 04:56 GMT, while US West Texas Intermediate (WTI) crude also rose by 6 cents to $58.41 per barrel.

Both Venezuela and Nigeria are major oil producers. Although Nigeria’s oilfields are primarily located in the south of the country, the airstrikes added to broader geopolitical concerns affecting energy markets.

The White House has instructed U.S. military forces to focus on a “quarantine” of Venezuelan oil shipments for at least the next two months, signalling that Washington is currently prioritising economic pressure rather than military action to influence Caracas.

Despite Friday’s modest gains, oil prices are on course for their steepest annual decline since 2020, as investors assess US economic growth and the likelihood of supply disruptions, including those involving Venezuela.

Brent crude and WTI are expected to fall by approximately 16 per cent and 18 per cent respectively this year, marking their sharpest annual declines since the COVID-19 pandemic severely reduced global oil demand. Supply is forecast to outpace demand in the coming year.

Meanwhile, oil shipments from Kazakhstan via the Caspian Pipeline Consortium (CPC) are set to fall by around one third in December, reaching their lowest level since October 2024, after a Ukrainian drone attack damaged facilities at the main CPC export terminal, according to two market sources cited on Wednesday.

The U.S. Energy Information Administration is scheduled to release official inventory data on Monday, later than usual due to the Christmas holiday. The figures are expected to provide fresh insight into demand conditions in the world’s largest oil-consuming nation.

Earlier this month, the United States seized 1.9 million barrels of oil on 10 December, according to official statements.



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