OIL PRICES HEAD TOWARD SECOND CONSECUTIVE WEEKLY LOSS AMID SUPPLY CONCERNS

OIL PRICES FELL SLIGHTLY ON FRIDAY MORNING, DECEMBER 19, HEADING TOWARD A SECOND WEEKLY LOSS. INVESTORS ARE EVALUATING THE RISK OF GLOBAL SUPPLY EXCESS DESPITE CONCERNS OVER POTENTIAL INTERRUPTIONS FROM VENEZUELA.

AS OF 07:35 BRT, BRENT FUTURES FOR FEBRUARY DROPPED 0.1%, OR $0.06, TO $59.76 PER BARREL, WHILE WTI FOR JANUARY FELL 0.30%, OR $0.17, TO $55.98 PER BARREL. BOTH CONTRACTS HAVE DECLINED MORE THAN 2% THIS WEEK, WITH FEARS OF EXCESS SUPPLY OVERSHADOWING RISKS FROM RUSSIAN AND VENEZUELAN SUPPLY INTERRUPTIONS.

IN INTERNATIONAL NEWS, U.S. PRESIDENT DONALD TRUMP STATED THAT THE LATEST ROUND OF NEGOTIATIONS TO END THE WAR IN UKRAINE IS “NEAR AN AGREEMENT,” WITH PROGRESS MADE ON BOTH SIDES, ALTHOUGH TERRITORIAL DISPUTES AND SECURITY GUARANTEES REMAIN KEY POINTS OF CONTENTION.

EU LEADERS DECIDED TO TAKE LOANS TO FUND UKRAINE’S DEFENSE RATHER THAN USING FROZEN RUSSIAN FUNDS. RUSSIA WARNED THE TRUMP ADMINISTRATION NOT TO MAKE A “FATAL MISTAKE” REGARDING VENEZUELA, CITING UNPREDICTABLE CONSEQUENCES FOR THE WESTERN HEMISPHERE AND URGING WASHINGTON TO AVOID FURTHER ESCALATION.

IN SUMMARY, THE OIL MARKET REMAINS UNDER PRESSURE FROM EXCESS SUPPLY, WITH PRICES SLIGHTLY LOWER AND GEOPOLITICAL TENSIONS POTENTIALLY INFLUENCING FUTURE MOVEMENTS.