Oil prices were largely steady during Asian trading on Friday, holding on to gains from earlier in the week as geopolitical tensions continued to support the market. However, thin holiday trading conditions limited fresh price movements and kept volatility subdued.
At 00:02 ET, Brent crude futures for February delivery edged up 0.1% to $62.30 per barrel, while U.S. WTI crude futures also rose 0.1% to $58.42 per barrel. Both benchmarks were on track to post weekly gains of nearly 3%, even as persistent oversupply concerns have left oil prices heading for sizable losses over the full year.
Geopolitical risks underpin oil prices
Crude markets stabilized after recent gains driven by increased U.S. pressure on Venezuelan oil exports. The White House ordered U.S. forces to enforce a two-month “quarantine” on Venezuelan oil shipments, a move aimed at tightening restrictions on exports from the OPEC producer.
The decision raised concerns about potential supply disruptions, as Venezuela has gradually increased oil shipments in recent months, particularly to Asian markets. These risks added a modest geopolitical premium to crude prices.
Supply concerns were further amplified after President Donald Trump said in a social media post that U.S. forces had carried out airstrikes against Islamic State militants in northwest Nigeria. The strikes heightened broader geopolitical risk perceptions tied to the oil-producing region, reinforcing cautious positioning across energy markets.
Oil prices still set for annual losses
Despite periodic geopolitical flare-ups, oil prices have struggled to sustain strong rallies throughout the year. Ongoing concerns about global demand growth and rising production outside the OPEC+ group have weighed heavily on the market.
Brent crude was on track to post an annual decline of nearly 16%, while WTI crude was set for losses of around 19%. With U.S. inventory data delayed due to the Christmas holiday and many global markets operating on reduced hours, oil prices remained range-bound on Friday. Market focus is expected to shift toward early January economic data and policy signals for clearer direction on supply and demand in the new year.
