Oil edges up amid Venezuela, Nigeria supply concerns
Oil prices inched higher on Friday as markets weighed supply risks from Venezuela and Nigeria. Brent crude rose 5 cents to $62.29 per barrel, while U.S. West Texas Intermediate (WTI) increased 6 cents to $58.41.
The U.S. has tightened economic pressure on Venezuelan oil shipments and carried out airstrikes against Islamic State militants in Nigeria’s Sokoto state in coordination with local authorities. Both countries are major oil producers, and geopolitical tensions have added to market uncertainty, News.Az reports, citing Reuters.
“Supply-side disruptions are currently the main driver of oil prices,” said Tong Chuan, an analyst at Galaxy Futures, noting that year-end trading was relatively subdued due to the Christmas holidays.
Despite the small gains, oil prices are set for their steepest annual decline since 2020, with Brent down about 16% and WTI around 18% for the year. Kazakhstan’s oil exports via the Caspian Pipeline are also expected to fall sharply after a Ukrainian drone strike damaged facilities at the main export terminal.
Investors will look to U.S. Energy Information Administration data next week for insight into demand in the world’s largest oil-consuming country.
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