BY COMFORT OOGBONNA
Oil prices extended gains for a second straight session on Friday, climbing more than 1% and heading toward their third consecutive weekly increase, as uncertainty over future supplies from Venezuela and growing unrest in Iran heightened concerns about global output.
Brent crude futures rose 83 cents, or 1.3%, to $62.82 a barrel by 0730 GMT, while U.S. West Texas Intermediate crude advanced 76 cents, also 1.3%, to $58.52 a barrel. The move followed a strong rally on Thursday, when both benchmarks surged more than 3% after two days of losses. For the week, Brent is on track to gain about 2.7%, while WTI has climbed roughly 1.4%.
Market analysts said tightening flows of sanctioned oil and resilient demand are offsetting expectations of an oversupplied market next year, at least in the near term. Priyanka Sachdeva, senior market analyst at Phillip Nova, said bottlenecks affecting sanctioned barrels and steady consumption signals are helping support prices, while rising geopolitical tensions are adding further momentum.
Oil prices have been buoyed in recent days by developments in Venezuela after U.S. President Donald Trump said Washington would take control of the country’s oil sector following the seizure of Venezuelan President Nicolas Maduro last week. The comments have raised questions about how Venezuelan crude exports will be handled going forward and whether previously discounted supplies will re-enter the market at higher prices.
At the same time, escalating unrest in Iran, a major Middle Eastern oil producer, has intensified worries about potential disruptions to output. Concerns have also resurfaced over the possibility that the Russia-Ukraine war could broaden to include further measures targeting Russian oil exports, adding another layer of uncertainty to global supply.
Tina Teng, market strategist at Moomoo ANZ, said the recent price surge has largely been driven by Trump’s claims over Venezuelan oil exports, which could result in higher pricing if discounted sales are curtailed. She noted that the market is closely watching how U.S. involvement may reshape Venezuela’s oil trade.
Several major energy players, including Chevron, as well as global trading houses Vitol and Trafigura, are reportedly vying for U.S. government-backed deals to export crude from Venezuela. Sources familiar with the matter said competition is intensifying over potential agreements to market Venezuelan oil.
Trump has demanded full U.S. access to Venezuela’s oil sector, and U.S. officials have indicated that Washington intends to control the country’s oil sales and revenues indefinitely. Companies are now contesting preliminary arrangements involving up to 50 million barrels of crude that state-run oil company PDVSA has accumulated in storage as a result of a strict oil embargo. The embargo has already led to the seizure of four tankers, according to sources.
Teng said markets will be focused in the coming days on how the stored Venezuelan oil is ultimately sold and delivered, warning that oversupply concerns could resurface if there are no clear limits placed on sales volumes.
Oil prices also rebounded after several muted sessions as traders reassessed geopolitical risks that had previously been overlooked, according to a report from Haitong Futures. However, the firm cautioned that rising global inventories continue to pose a headwind for prices and could limit the scope of further gains.
Adding to supply worries, Iran experienced a nationwide internet blackout on Thursday, according to internet monitoring group NetBlocks, as protests spread across Tehran, Mashhad, Isfahan and other cities over worsening economic conditions. Despite these tensions, Haitong Futures said the current rebound in oil prices may be difficult to sustain unless risks surrounding Iran escalate further.
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