Oil prices edged higher as the market focused on geopolitical supply risks
Oil prices rose slightly on Friday following increasing US pressure on Venezuela, continuing Russia-Ukraine tensions, and US airstrikes against ISIS militants in Nigeria.
Brent crude futures rose 5 cents, or 0.1%, to $62.29 a barrel as of 06:06 GMT. WTI crude also rose 6 cents to $58.41.
Venezuela and Nigeria remain major oil producers, while the airstrikes in northwestern Nigeria increased geopolitical risks.
The White House ordered its military forces to focus on "quarantining" Venezuelan oil for at least the next two months, suggesting Washington is more interested in using economic rather than military methods to exert pressure.
Year-end market activity remained relatively subdued due to the Christmas holiday. Supply disruptions became the primary determinant of oil prices.
However, as investors assess U.S. economic growth and consider the risk of supply disruptions, oil prices appear poised for their sharpest annual decline since 2020.
Brent and WTI prices are expected to fall by approximately 16% and 18%, respectively, this year; these will be the sharpest declines since the COVID pandemic impacted oil demand.
Following a Ukrainian drone strike that damaged facilities at the main CPC export terminal, oil shipments from Kazakhstan via the Caspian Pipeline are expected to fall by a third in December, reaching their lowest level since October 2024.
The U.S. Energy Information Administration (EIA) will release official inventory data on Monday. This data will provide a picture of demand in the world's largest oil consumer.
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