Oil Prices Rise on Venezuela Sanctions, Nigeria Airstrikes

Oil prices rose on Friday after the U.S. increased economic pressure on Venezuelan oil and carried out airstrikes in Nigeria. Brent crude futures climbed 24 cents, or 0.4%, to $62.48 per barrel. U.S. West Texas Intermediate crude rose 23 cents, also 0.4%, to $58.58. Both Venezuela and Nigeria are major oil producers, and geopolitical tensions added to market concerns.

The White House directed U.S. military forces to focus on a “quarantine” of Venezuelan oil for at least two months. Officials signaled a preference for economic pressure over direct military action against Caracas. These measures are intended to curb Venezuela’s oil exports and influence global supply.

Despite Friday’s gains, oil prices are on track for their steepest annual decline since 2020. Brent and WTI are expected to fall about 16% and 18% this year. Analysts attribute the decline to concerns over U.S. economic growth and ample oil supply next year.

Oil shipments from Kazakhstan via the Caspian Pipeline are expected to drop by a third in December. A Ukrainian drone attack damaged the main CPC export terminal, reducing export capacity to its lowest level since October 2024. Market sources said the disruption could tighten supply temporarily.

The U.S. Energy Information Administration will release official inventory data on Monday, delayed by the Christmas holiday. Analysts expect the report to provide insight into demand in the world’s largest oil-consuming nation. Investors will closely monitor the data to assess market trends and potential price movements.

Read more : Oil Prices Fall as Russian Exports Resume After Attack

Oil prices fell in early Asian trade on Monday, erasing last week’s gains. Brent crude futures dropped by 58 cents, or 0.9%, to $63.81 a barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures were down by 59 cents, or 1.0%, trading at $59.50 a barrel. The decline came after oil loadings resumed at the key Russian export port of Novorossiysk, which had been suspended due to a Ukrainian attack.

Last week, oil prices had risen more than 2% after the suspension of exports from Novorossiysk and a neighboring terminal. These disruptions affected around 2% of global oil supply. However, with loadings resuming on Sunday, market sentiment turned bearish. Ukrainian military strikes on Russian oil facilities, including the Ryazan and Novokuibyshevsk refineries, continued to fuel concerns over future disruptions.