Oil prices experienced an uptick for a second consecutive day on Friday, positioning themselves for a third weekly increase, amid uncertainties surrounding future supply from Venezuela and escalating unrest in Iran, which raises concerns about output in that region. Brent futures increased by 44 cents, representing a 0.71% rise, reaching $62.43 per barrel at 0203. Meanwhile, U.S. West Texas Intermediate crude saw an uptick of 39 cents, or 0.68%, bringing it to $58.15. Both benchmark prices experienced an increase exceeding 3% on Thursday, rebounding after two consecutive days of declines. Brent is projected to rise by 2.7% for the week, whereas WTI has recorded a gain of 1.4% for the same period.

Prices have increased in the wake of U.S. President Donald Trump’s actions regarding Venezuelan President Nicolas Maduro last week, alongside assertions that the U.S. will take control of the oil sector in the South American nation. Civil unrest in the significant Middle Eastern producer Iran, coupled with apprehensions regarding the potential expansion of the Russia-Ukraine conflict impacting Russian oil exports, has heightened concerns surrounding supply dynamics. The price surge can be attributed to Trump’s assertion regarding control over Venezuela’s oil exports, which may lead to a rise in prices from previously discounted sales,” stated Tina Teng. Chevron Corp, along with global trading houses Vitol and Trafigura, is engaged in competition for U.S. government contracts to export crude oil from Venezuela, as reported by sources.

Trump has insisted that Venezuela provide the U.S. with complete access to its oil sector shortly after the capture of Maduro on Saturday. U.S. officials have indicated that Washington will maintain control over the nation’s oil sales and revenues for the foreseeable future. The companies are challenging preliminary agreements to sell the up to 50 million barrels of oil that the state-owned oil company PDVSA has stockpiled in its inventories, a situation exacerbated by a stringent oil embargo that has led to four tanker seizures, according to sources. The market’s attention will be directed towards the impending outcome regarding the sale and delivery of Venezuelan oil currently in storage over the next few days. “Oversupply concerns could remain a concern if there is no limitation on sales,” said Teng.

Oil prices experienced a notable increase following a period of relative calm, reflecting a partial adjustment to previously overlooked geopolitical risks, according to a report released on Friday. An extensive internet blackout was documented in Iran on Thursday, according to the reports, coinciding with ongoing protests related to economic difficulties across the nation. Iran’s President Masoud Pezeshkian cautioned domestic suppliers regarding the practices of hoarding and overpricing goods, as reported by state media on Thursday. This warning comes as Tehran implements significant subsidy reforms amidst widespread protests driven by economic difficulties. Nonetheless, global inventories are on the rise, and oversupply continues to be the primary factor that could limit the increase, according to reports. Provided that tensions regarding Iran do not intensify, the recovery appears to be constrained and difficult to maintain, according to reports.