Oil Prices Rise for Second Day Amid Venezuela Uncertainty and Iran Unrest

PUKMEDIA

Oil prices.

Oil prices rose for a second consecutive day on Friday and were on course for a third weekly gain, driven by uncertainty over future supply from Venezuela and growing concerns over potential disruptions in Iran amid escalating unrest.

According to Reuters, Brent crude futures increased by 40 cents, or 0.7 per cent, to $62.39 a barrel by 0400 GMT, while US West Texas Intermediate (WTI) crude rose by 35 cents, or 0.6 per cent, to $58.11.

Both benchmarks climbed by more than 3 per cent on Thursday following two days of declines. Brent is set to record a weekly gain of 2.7 per cent, while WTI has risen by 1.4 per cent over the week.

Prices have strengthened following US President Donald Trump’s seizure of Venezuelan President Nicolás Maduro last week and his assertion that the United States would assume control of the South American country’s oil sector.

Supply concerns have also been heightened by civil unrest in Iran, a major Middle Eastern oil producer, as well as fears that the Russia–Ukraine war could expand to directly target Russian oil exports.

US oil major Chevron, along with global trading houses Vitol and Trafigura, are among several firms competing for US government contracts to export crude oil from Venezuela, according to sources familiar with the matter.

President Trump has demanded that Venezuela grant the United States full access to its oil sector, just days after Maduro was captured on Saturday. US officials have stated that Washington intends to control Venezuela’s oil sales and revenues indefinitely.

The companies are reportedly contesting initial agreements to market up to 50 million barrels of crude accumulated in inventories by state-owned oil company PDVSA, amid a stringent oil embargo that has already resulted in the seizure of four tankers, according to two sources.

Meanwhile, a nationwide internet blackout was reported in Iran on Thursday, according to internet monitoring group NetBlocks, as protests over economic hardship continued in Tehran and major cities including Mashhad and Isfahan, as well as other parts of the country.



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