WTI crude oil prices were on track for a weekly gain on Friday, supported by expectations of a U.S. Federal Reserve interest rate cut, escalating tensions between the United States and Venezuela, and stalled peace talks in Moscow. However, both major oil benchmarks dipped slightly from the previous session.
Brent crude slipped 14 cents, or 0.2%, to $63.12 a barrel by 0400 GMT, remaining largely steady over the week. U.S. West Texas Intermediate (WTI) fell 18 cents, or 0.3%, to $59.49 per barrel, though it posted a weekly gain of about 1.6%, marking its second consecutive weekly rise.
“The market weighs the impact of lower CPC exports and some positive news on the demand side, with a possible Fed rate cut in talk,” said Anh Pham, senior research specialist at LSEG, referring to reduced Kazakh oil flows following a Ukrainian drone strike on the Caspian Pipeline Consortium’s Black Sea terminal.
Both benchmarks had settled around 1% higher in the previous session.
A Reuters poll conducted between November 28 and December 4 showed that 82% of economists expect the Federal Reserve to cut interest rates by 25 basis points at next week’s policy meeting. Lower rates typically stimulate economic activity and increase oil demand.
Looking ahead, analysts say supply dynamics remain uncertain. “A peace deal with Russia would bring more barrels to the market and likely push prices down,” Pham said. “On the other hand, any geopolitical escalation will drive prices higher. OPEC+ holding output steady into early next year also adds support.”
Markets are also watching for a potential U.S. military move into Venezuela after President Donald Trump said the U.S. would soon take action to halt Venezuelan drug trafficking. Rystad Energy noted that such a development could threaten Venezuela’s 1.1 million barrels per day of crude output, most of which is exported to China.
Oil prices this week also found support from the failure of U.S.-Russia talks in Moscow to secure progress on the Ukraine conflict, which could have included a deal to reintroduce Russian oil into global markets.
Despite these bullish pressures, concerns over oversupply persist. Saudi Arabia has lowered its January Arab Light crude prices for Asia to the lowest level in five years amid a growing surplus, according to a document reviewed by Reuters.
