WTI crude oil futures hovered around $59.7 per barrel on Friday, holding at a two-week high and remaining on track for a weekly gain, driven by geopolitical risk premium. Traders continued to watch for a possible US move in Venezuela after President Donald Trump signaled imminent action against the oil giant, with Rystad Energy warning that any escalation could threaten the country’s 1.1 million bpd of crude output. Prices were also supported by the lack of progress in US talks in Moscow over the Ukraine war, which reduced the near-term prospects for restoring Russian supply, while Ukraine continued targeting Russian energy infrastructure. Expectations of a US rate cut, which could stimulate economic activity and boost oil demand, also added upward pressure. Still, concerns over demand and potential oversupply capped gains, with Saudi Arabia lowering its January Arab light crude price for Asia to its lowest level in five years, while Canadian oil tumbles to its weakest since March.
