Khaberni - Oil prices registered a slight increase on Friday after the United States intensified economic pressure on Venezuelan oil shipments and executed airstrikes against ISIS militants in northwest Nigeria at the request of the Abuja government.
Brent crude futures rose six cents or 0.1% to $62.30 a barrel, while West Texas Intermediate crude in the U.S. also climbed six cents to $58.41 a barrel.
Venezuela and Nigeria are among the largest oil producers. Although Nigerian oil fields are mainly located in the southern part of the country, the airstrikes increase geopolitical risks.
The White House has instructed the U.S. military forces to focus on "enforcing a ban" on Venezuelan oil for at least the next two months, indicating that Washington is currently focusing on using economic and not military means to pressure Caracas.
Tongchuang, an analyst at Galaxy Futures said, "Due to the Christmas holiday closure, market activity at the end of the year remains relatively weak. Supply disruptions have become the main driver of oil prices."
However, oil prices are on track to record their largest annual decline since 2020, as investors assess the prospects for U.S. economic growth and evaluate the possibilities of supply disruptions including from Venezuela.
Brent and West Texas Intermediate crude are heading for a decline of about 16% and 18% respectively this year, the largest drop since the COVID-19 pandemic undermined the demand for oil. Supplies are expected to exceed demand next year.
The U.S. Energy Information Administration is scheduled to release official inventory data on Monday, later than usual due to the Christmas holiday. The data is expected to provide a snapshot of demand in the world's largest oil consumer.
