05.12.202501:46:35UTC+00Oil Set for Weekly Gain

WTI crude oil futures steadied around $59.7 per barrel on Friday, marking a two-week high and poised for a weekly increase, primarily due to geopolitical tensions. Market participants remained alert to potential U.S. interventions in Venezuela following President Donald Trump's indication of forthcoming measures against the oil-rich nation. Analysts at Rystad Energy highlighted that heightened tensions could jeopardize Venezuela’s crude output of 1.1 million barrels per day. Prices were further bolstered by stagnant discussions between the U.S. and Russia concerning the Ukraine conflict, diminishing the immediate likelihood of replenishing Russian oil supplies, while Ukraine persistently targeted Russian energy assets. Expectations of a U.S. interest rate reduction, which might stimulate economic growth and enhance oil consumption, contributed to the upward momentum. However, concerns about global crude demand and potential oversupply constrained further price increases. This was underscored by Saudi Arabia lowering its January pricing for Arab light crude to Asia to the lowest in five years, coupled with a significant decline in Canadian oil prices to levels last observed in March.