Oil Prices Rise on Venezuela Sanctions and Nigeria Airstrikes Despite Annual Losses

Global oil prices edged higher on Friday as geopolitical tensions intensified following new U.S. actions targeting Venezuelan oil shipments and military airstrikes against Islamic State militants in Nigeria. These developments added fresh uncertainty to energy markets already navigating weak demand outlooks and oversupply concerns.

Brent crude futures climbed 24 cents, or 0.4%, to trade at $62.48 per barrel by 0114 GMT, while U.S. West Texas Intermediate (WTI) crude gained 23 cents, also 0.4%, to $58.58 per barrel. The modest increase reflected heightened geopolitical risk premiums, particularly involving two major oil-producing nations, Venezuela and Nigeria.

The White House ordered U.S. military forces to intensify economic pressure on Venezuela by enforcing what officials described as a “quarantine” of Venezuelan oil shipments for at least the next two months. The move signals Washington’s preference for economic tools rather than direct military action to influence the Venezuelan government. Any disruption to Venezuelan crude exports has the potential to tighten global supply, supporting oil prices in the near term.

Meanwhile, U.S. airstrikes in northwest Nigeria were carried out at the request of Nigeria’s government, targeting Islamic State militants. Although Nigeria’s oil production is largely concentrated in the southern Niger Delta region, the military action contributed to broader geopolitical concerns, which often influence oil market sentiment regardless of direct supply impact.

Despite Friday’s gains, oil prices remain under significant pressure this year. Brent and WTI crude are on track to fall approximately 16% and 18% respectively in 2025, marking their steepest annual declines since 2020, when the COVID-19 pandemic crushed global fuel demand. Investors continue to weigh slowing U.S. economic growth and expectations that global oil supply will outpace demand next year.

Adding to supply-side developments, oil shipments from Kazakhstan through the Caspian Pipeline Consortium are expected to drop by about one-third in December after a Ukrainian drone attack damaged facilities at the main export terminal.

Market participants are also awaiting U.S. Energy Information Administration inventory data, due Monday after a holiday delay, which should provide fresh insight into demand trends in the world’s largest oil consumer.