Oil prices rose by 2% over the weekend as supply worries mounted from protests in Iran, escalating attacks in Russia’s war in Ukraine, and uncertainty surrounding Venezuela after the capture of President Nicolás Maduro.
Nigeria’s benchmark, Brent futures, settled $1.35, or 2.18% higher, at $63.34 per barrel. U.S. West Texas Intermediate (WTI) crude gained $1.36, or 2.35%, to $59.12 per barrel.
Earlier, both benchmarks climbed more than 3% on Thursday after two straight days of declines. For the week, Brent rose about 4%, while WTI gained about 3%.
Analysts say unrest in Iran is keeping markets unsettled.
“The uprising in Iran is keeping the market on edge,” said Phil Flynn, Senior Analyst at the Price Futures Group.
“Iran protests seem to be gathering momentum, leading the market to worry about disruptions,” added Ole Hansen, Head of Commodity Analysis at Saxo Bank.
A nationwide internet blackout was reported Thursday as protests over economic hardship spread across Tehran, Mashhad, Isfahan, and other cities, according to Reuters.
OPEC output fell to 28.40 million barrels per day last month, down 100,000 bpd from November’s revised total. Iran and Venezuela posted the largest declines.
Russia-Ukraine War Escalation
Concerns about the Russia-Ukraine conflict also weighed on supply. The Russian military said Friday it fired its hypersonic Oreshnik missile at Ukrainian targets, including energy infrastructure supporting the country’s military-industrial complex.
Despite these risks, analysts at Haitong Futures noted that global oil inventories are rising. They warned oversupply remains the main driver that could cap gains unless unrest in Iran escalates further.
U.S. President Donald Trump has demanded Venezuela grant Washington full access to its oil sector following Maduro’s capture last Saturday. Administration officials said the U.S. will control Venezuelan oil sales and revenue indefinitely.
Global firms including Chevron, Vitol, and Trafigura are competing for U.S. government contracts to market up to 50 million barrels of oil held in inventories by Venezuela’s state-run company PDVSA amid a severe embargo.
“The market will focus on the outcome in the coming days for how the Venezuelan oil in storage will be sold and delivered,” said Tina Teng, market strategist at Moomoo ANZ.
In Nigeria, crude oil production has remained below both the country’s OPEC quota of 1.5 million barrels per day and its budget targets in recent months.
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You want to control the oil revenues and returns indefinitely? Under which rights? Venezuela has full autonomy over the natural resources found within it’s land, air and water area.
It is quite a pity that international bodies are all watching with folded hands, while America bullies other states with less military power in comparison to them.