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Oil Heads for Biggest Weekly Gain Since October as U.S. Tightens Venezuelan Oil Quarantine, Strikes ISIS in Nigeria

Geopolitical moves added a supply‑risk premium during thin holiday trading.

Overview

  • Brent hovered near $62.5 and WTI around $58.6 on Friday, setting up the largest weekly advance since late October.
  • The White House directed U.S. forces to focus on quarantining Venezuelan oil for at least two months, with two tankers seized this month and the sanctioned Bella 1 turning away as it was pursued.
  • President Donald Trump said the U.S. carried out a strike on Islamic State targets in northwest Nigeria, a producer of roughly 1.5 million barrels per day, with no reports of disrupted output.
  • Despite the week’s jump, Brent and WTI remain on track for their steepest annual declines since 2020, with major forecasters flagging a looming supply surplus into next year.
  • Volatility was heightened by holiday‑thinned volumes and a delayed U.S. inventory report due Monday, while separate damage to Kazakhstan’s CPC export flows added another supply watchpoint.