Oil prices edged higher on Friday as markets reacted to fresh supply-side risks linked to U.S. economic pressure on Venezuelan crude exports and reports of U.S. military airstrikes targeting Islamic State militants in northwest Nigeria.
Brent Crude oil, against which Nigerian crude oil is priced, rose 6 cents, or 0.1 percent to $62.30 per barrel by 05:56 a.m., while West Texas Intermediate gained 6 cents to trade at $58.41 per barrel.
Both Venezuela and Nigeria are major oil-producing countries, and developments affecting either market tend to draw close attention from energy traders. While Nigeria’s oil infrastructure is largely concentrated in the southern Niger Delta region, the reported airstrikes increased geopolitical risk premiums tied to the country, particularly as broader regional instability remains a concern.
The White House has directed U.S. authorities to intensify economic pressure on Venezuela by effectively “quarantining” its oil shipments for at least the next two months.
The move signals a preference for economic and trade-based measures rather than direct military action as Washington seeks to tighten constraints on crude flows from Caracas.
Analysts noted that thin liquidity conditions linked to the Christmas holiday limited price movement, even as supply risks provided modest support.
“Due to the Christmas holiday closure, year-end market activity remained relatively subdued,” said Tong Chuan, an analyst at Galaxy Futures. “Supply-side disruptions have become the primary driver of oil prices.”
Despite Friday’s uptick, oil markets remain on track for their steepest annual decline since 2020.
Brent crude and WTI are down about 16 percent and 18 percent respectively for the year, as investors weigh slowing U.S. economic growth against expectations that global supply will outpace demand in 2026.
Additional supply concerns emerged from Central Asia, where oil shipments from Kazakhstan via the Caspian Pipeline Consortium are expected to fall by roughly one-third in December.
The decline follows damage to facilities at the main CPC export terminal after a Ukrainian drone attack, according to market sources.
Attention now turns to upcoming demand indicators. The U.S. Energy Information Administration is scheduled to release its official crude oil inventory data on Monday, later than usual due to the Christmas holiday.
The figures are expected to provide fresh insight into consumption trends in the world’s largest oil-consuming economy.
For now, oil prices remain supported by supply-side uncertainty, even as the broader market grapples with a weaker demand outlook heading into the new year.
