Oil Prices Steady, Supply Risks Continue to Maintain Caution
Oil prices held steady on Friday amid growing geopolitical tensions, with investors monitoring potential supply risks. Brent crude futures fell 2 cents to $62.22 per barrel, while West Texas Intermediate (WTI) rose 6 cents to $58.41. The market remained cautious following the US airstrikes against the Islamic State terrorist group in Nigeria, which, while not directly targeting oil infrastructure, added to global tensions.
Furthermore, the Trump administration is increasing economic pressure on Venezuela by focusing the US military on a two-month "quarantine" of Venezuelan oil. Despite the supply disruptions, oil prices remain driven by concerns about a global oversupply, with Brent and WTI expected to see their largest annual declines since 2020.
Other geopolitical tensions in Eastern Europe are also affecting the oil market. Investors are now focused on the peace process between Russia and Ukraine, which could alter global oil supply dynamics. A peace deal could pave the way for the removal of international sanctions on Russia's oil sector, potentially altering the global supply balance.
Although oil is expected to face challenges due to a projected supply surplus next year, ongoing supply disruptions in Venezuela and Kazakhstan continue to support oil prices. All eyes are on further developments in international diplomacy and their impact on energy markets. (asd)
Source: Newsmaker.id
