Oil prices rose on Friday, supported by a larger-than-expected decline in U.S. crude inventories and supply disruptions across key export routes.
The bullish momentum outweighed concerns over a potential increase in Venezuelan crude supply.
Brent crude oil, against which Nigerian crude oil is priced, rose 20 cents or 0.29% to $69.38 a barrel as of 06:19 a.m. in Nigeria while the West Texas Intermediate (WTI) crude gained 20 cents, or 0.30% to trade at $66.23.
According to data from the U.S. Energy Information Administration (EIA), crude inventories fell by 3.2 million barrels last week to 419 million barrels, more than double the 1.6 million-barrel decline projected by analysts in a Reuters poll.
The inventory reduction underscored persistent tightness in the U.S. market and contributed to upward price pressure.
In addition to the inventory report, brief disruptions in Kazakh Black Sea oil exports and Azeri BTC crude loading from Turkey’s Ceyhan port further tightened near-term supply.
The recent curbs on Russian gasoline exports also lent support to the energy market.
“Crude oil held and bounced away from support this week, keeping hopes intact of a rebound back towards $70,” said Tony Sycamore, market analyst at IG.
This week, Brent is on track to gain 0.4% while WTI is down 1.4%, despite a roughly 1% climb on Thursday driven by positive economic signals and supply-side developments.
Meanwhile, the oil market is monitoring geopolitical developments as the United States prepares to ease certain restrictions on Venezuelan oil. Sources indicated that partners of Venezuela’s state-run PDVSA, including U.S. oil major Chevron, may be allowed to resume limited operations.
This could result in an incremental supply of over 200,000 barrels per day, offering some relief to refiners seeking heavier crude blends.
However, ING analysts noted that “trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply,” referring to recent progress between the U.S., Japan, and the European Union in de-escalating tariff tensions.
Economic data expected next week from major global economies, including China’s factory activity and U.S. inflation and jobs reports, will likely guide the next direction for crude prices.
