Global oil prices rose on Friday due to fears of potential supply disruptions from Venezuela, although they remain on track for a weekly decline as market caution persists and hopes for Russia-Ukraine peace talks grow.
Brent crude futures increased by 43 cents, or 0.70%, reaching $61.71 per barrel, while U.S. West Texas Intermediate (WTI) crude stood at $58.03 per barrel, reflecting a rise of 43 cents or 0.75%.
U.S. authorities are preparing to halt more vessels carrying Venezuelan oil after seizing one tanker earlier this week, a move aimed at pressuring President Nicolás Maduro. This has heightened concerns over supply disruptions.
Hiroyuki Kikukawa, chief strategist at Nissan Securities, said that despite hopes for a Russia-Ukraine peace deal, buying activity increased after U.S. authorities seized a Venezuelan tanker. He added that if such a deal is reached, WTI prices could fall to $55.
Both crude contracts have fallen more than 3% this week, reflecting uncertainty in the market. According to NZ Research, the decline is driven by risk-averse behavior and expectations of weaker market conditions.
Globally, oil supply is projected to exceed demand by 3.84 million barrels per day, while OPEC expects supply and demand to nearly balance by 2026—an outlook that differs from IEA projections.
Separately, a Ukrainian Security Service official stated that Ukrainian drones have, for the first time, targeted an oil platform in the Caspian Sea, halting production at a facility owned by Lukoil.
