Supply Concerns Lift Oil Prices, Though Market Still Set for Weekly Drop
Oil prices rose on Friday, supported by concerns over Venezuelan supply disruptions, though they remained on track for a weekly decline as a supply glut and potential Russia-Ukraine peace deal remain in focus.
Brent crude futures rose 33 cents, or 0.54%, to $61.61 a barrel by 0921 GMT. U.S. West Texas Intermediate crude was up 35 cents, or 0.61%, at $57.95. Both benchmarks fell by about 1.5% on Thursday.
Some price-supportive factors remain, including the ramping up of tensions between the U.S. and Venezuela and Ukraine drone strikes on a Russian oil rig in the Caspian Sea, said Janiv Shah, analyst at Rystad Energy.
The U.S. is preparing to intercept more ships transporting Venezuelan oil after the seizure of a tanker this week, six sources close to the matter said on Thursday.
Russia’s seaborne oil product exports in November were down by only 0.8% from October, with the completion of refinery maintenance helping to offset a drastic fall in fuel exports from southern routes such as the Black Sea and Azov Sea, data from industry sources and Reuters calculations showed.
The Brent and WTI benchmarks have lost more than 3% this week, reflecting the broader market uncertainties.
While there might be sporadic support from hits to supply, the general market mood reflects supply exceeding demand, and any rallies were expected to be brief, said PVM Oil Associates analyst Tamas Varga.
Reporting by Seher Dareen in London, Yuka Obayashi in Tokyo and Siyi Liu in Singapore; Editing by David Goodman
This article was first reported by Reuters
