Oil prices are headed for their biggest weekly gain since late October, driven by escalating geopolitical tensions. West Texas Intermediate (WTI) prices are stable above $58 per barrel, posting a gain of more than 3% this week. This price surge comes amid tensions between the US and Venezuela, where the US has tightened its blockade of oil shipments, including the pursuit of sanctioned tankers.

Meanwhile, the US military offensive in Nigeria is also impacting oil prices. The US recently launched a deadly offensive against the Islamic State group in northwest Nigeria, an OPEC member producing around 1.5 million barrels per day. These tensions are adding to concerns about global oil supply.

However, despite the stabilization of oil prices, the market is still facing its biggest annual decline since 2020 due to expectations of a global oversupply by 2026. Producers within and outside OPEC+ are expected to increase supply, which could further pressure prices. However, geopolitical tensions, particularly in Venezuela and Nigeria, are keeping prices from falling too sharply.

Additionally, in Europe, Ukrainian President Volodymyr Zelenskiy announced that he had discussed with US envoys Steve Witkoff and Jared Kushner how to end the war with Russia, while Ukraine continues its military offensive, including an attack on the Novoshakhtinsk refinery in Russia's Rostov region. This tension has added to uncertainty in the global oil market. (az)

Source: Newsmaker.id