Prices of Crude Oil Little Change over Soft Trading
Global prices of crude oil were little changed on Friday, as thin holiday trading and heightened geopolitical risks lent modest support to prices.
International benchmark Brent crude futures was trading at $62.33 per barrel, up 0.1% from the previous close of $62.24. US benchmark West Texas Intermediate (WTI) also increased by 0.01% to $58.54, compared to $58.53 in the prior session.
Trading volumes remained subdued as many major markets were closed on Thursday due to the Christmas holiday, with liquidity still thin in global markets.
The modest uptick in prices was supported by rising tensions between the US and Venezuela, as well as reports that the US carried out strikes against targets linked to Islamic State in northwestern Nigeria. US President Donald Trump said on social media that the operation was conducted under his orders.
Separately, Khaled Khiari, UN assistant secretary-general for Middle East, Asia and the Pacific in the Departments of Political and Peacebuilding Affairs and Peace Operations, warned that air and maritime restrictions on Venezuela risk further constraining the government’s financial capacity to provide basic public services.
Both Venezuela and Nigeria rank among the world’s key oil producers, and the latest developments have added to geopolitical risk premiums in the market, helping to underpin prices.
Meanwhile, the US Energy Information Administration is expected to release its weekly oil inventory data on Monday, later than usual due to the holiday. The figures are likely to provide clearer signals on demand trends in the world’s largest oil consumer. Anchoria Securities Sets N1,400 Target Price for Geregu Power
