Oil prices experienced an uptick on Friday following the U.S. decision to impose heightened economic pressure on Venezuelan oil shipments, alongside the execution of airstrikes against Islamic State militants in northwest Nigeria at the behest of the Nigerian government. Brent crude futures experienced an increase of 24 cents, representing a 0.4% rise, reaching $62.48 per barrel as of 0114. U.S. West Texas Intermediate crude experienced an increase of 23 cents, reflecting a rise of 0.4%, reaching a price of $58.58. Venezuela and Nigeria are significant players in the global oil production landscape. Nigeria’s oilfields are predominantly situated in the southern region, and the recent airstrikes have heightened geopolitical risks.

The White House has directed U.S. military forces to concentrate on a “quarantine” of Venezuelan oil for a minimum of the next two months, suggesting that Washington is presently more inclined to employ economic strategies rather than military options to exert pressure on Caracas. Oil prices are poised for their most significant annual decline since 2020, as investors evaluate U.S. economic growth and consider the potential risks of supply disruptions, particularly in Venezuela.

Brent and WTI prices are projected to decline approximately 16% and 18%, respectively, this year, marking their most significant decreases since the onset of the COVID pandemic, as supply is anticipated to exceed demand in the coming year. Oil shipments from Kazakhstan through the Caspian Pipeline are projected to decline by one-third in December, reaching the lowest levels since October 2024, following a Ukrainian drone attack that inflicted damage on facilities at the primary CPC export terminal, according to two market sources on Wednesday.

The U.S. Energy Information Administration is set to publish its official inventory data on Monday, a delay attributed to the Christmas holiday. The data is expected to provide insights into the demand dynamics of the largest oil consumer globally.