Baghdad: Oil prices edged higher on Friday as the United States stepped up economic pressure on Venezuelan oil shipments, while carrying out airstrikes against Islamic State militants in northwestern Nigeria. By Friday evening, U.S. crude futures West Texas Intermediate (WTI) rose 0.10% to $58.41 per barrel, while global benchmark Brent crude gained 0.09% to $62.29 per barrel.

According to National Iraqi News Agency, Venezuela and Nigeria are among the world’s major oil producers. Although Nigeria’s oil fields are largely located in the southern part of the country, the recent airstrikes have heightened geopolitical risks. In this context, the White House has tasked U.S. military forces with focusing on enforcing an effective ban on Venezuelan oil for at least the next two months, signaling Washington’s reliance on economic measures rather than military action to pressure Caracas.

Tong Chuan, an analyst at Galaxy Futures, stated that market activity remains relatively subdued toward year-end due to the Christmas holiday, while supply-side disruptions have become the primary driver of oil prices. Despite the modest gains, oil prices are on track to post their largest annual decline since 2020, as investors assess U.S. economic growth prospects and evaluate the likelihood of supply disruptions, including those from Venezuela.

Both Brent and WTI crude are expected to fall by around 16% and 18%, respectively, this year, marking their steepest annual losses since the COVID-19 pandemic undermined global oil demand. Supplies are expected to exceed demand next year. The U.S. Energy Information Administration (EIA) is scheduled to release its official inventory data on Monday, later than usual due to the Christmas holiday. The data are expected to provide clearer insights into demand conditions in the United States.