Oil prices climbed for a second straight session on Friday as markets weighed rising geopolitical risks against an already oversupplied global market, with uncertainty around Venezuela’s oil exports and unrest in Iran driving renewed volatility.
Brent crude futures rose 83 cents, or 1.3%, to $62.82 a barrel by 0730 GMT. U.S. West Texas Intermediate (WTI) gained 76 cents, or 1.3%, to $58.52. Both benchmarks are on track for a third consecutive weekly gain.
Venezuela oil control reshapes export market
Prices strengthened after U.S. President Donald Trump said Washington would control Venezuela’s oil sector following the capture of President Nicolas Maduro last week. U.S. officials said the United States would oversee oil sales and revenues indefinitely.
Market analysts said the move could push prices higher by ending heavily discounted Venezuelan crude sales.
“The price surge has been primarily due to Trump’s claim to control Venezuela’s oil export,” said Tina Teng, market strategist at Moomoo ANZ.
Up to 50 million barrels of oil accumulated by state-owned PDVSA are now expected to be sold under U.S. oversight. Sources said Chevron Corp, Vitol, and Trafigura are competing for U.S. government deals to export the crude.
Iran unrest and war risks add pressure
Concerns have also intensified over supply disruptions in Iran, where nationwide internet blackouts were reported amid protests over economic hardship. Fears that the Russia-Ukraine war could extend to Russian oil exports have added to market anxiety.
“Escalation in geopolitical stress adds to the current momentum in oil prices,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Oversupply still caps upside
Despite the rally, analysts warned that rising global inventories could limit further gains. Brent is up 2.7% for the week, while WTI has gained 1.4%, following sharp swings earlier in the week.
Unless unrest in Iran escalates further or Venezuelan sales are restricted, the rebound may be difficult to sustain, Haitong Futures said.
Read also: Chinese refiners shift to Iranian oil as Venezuelan supply drops
