In the early trading hours on Friday, the West Texas Intermediate oil prices were set to increase by almost two percent for the week. This increase was driven by several factors, including the expected reduction to interest rates by the Federal Reserve, the escalating tensions between the United States and Venezuela, and the deadlock in peace discussions that were taking place in Moscow. It would constitute a series of back-to-back weekly rises. When the market opened on Friday, the prices displayed only a slight amount of movement. Brent crude rose by six cents, or 0.09 percent, to reach a price of $63.32 per barrel, which was reached around 0104. The price of U.S. West Texas Intermediate rose by four cents, which is equivalent to a 0.07 percent gain, bringing the cost to $59.71 per barrel. Both of the contracts ended with a rise of around 1 percent in the previous trading session.

According to the results of a study, 82 percent of economists predicted that there would be a cut of 25 basis points in interest rates at the next Federal Reserve policy meeting. The demand for oil would increase and economic growth would be bolstered if interest rates were lowered. Following President Donald Trump’s statements late last week that the United States will soon begin taking action to combat drug traffickers from Venezuela on land, markets were on high alert for the possibility of a potential military involvement by the United States in Venezuela.

In a letter, it is stated that if such a move were to take place, it may put in jeopardy the 1.1 million barrels of crude oil that Venezuela produces on a daily basis, the majority of which is exported to China. This week, prices experienced an increase as a result of the disappointing conversations that took place in Moscow between the United States and other nations. These discussions did not produce any significant progress in relation to the situation in Ukraine.

The re-entry of Russian oil into the market could have been aided by advances like these, supposing they had actually occurred. In spite of the fact that the surplus was growing, these elements kept the prices from falling. In reaction to the prevailing oversupply conditions, Saudi Arabia has decreased the selling prices of its January Arab Light oil to Asia, reaching the lowest level in five years.