Dec 5, 2025
WTI is on track for weekly increases as optimism about the Fed supports the market and tensions in Venezuela arise.
WTI oil prices were set for a weekly increase on Friday, driven by anticipated interest rate cuts from the Federal Reserve, rising tensions between the U.S. and Venezuela, and stalled peace negotiations in Moscow, although both oil benchmarks saw declines from the previous day.
Brent crude decreased by 3 cents, or 0.05%, to $63.23 per barrel by 0745 GMT, remaining relatively stable over the week. Meanwhile, U.S. West Texas Intermediate fell 10 cents, or 0.17%, to $59.57 per barrel, but achieved a weekly gain of approximately 1.7%, marking its second consecutive week of increases.
"The market is considering the effects of reduced CPC exports and some encouraging demand signals, along with a potential Fed rate cut," stated Anh Pham, a senior research specialist at LSEG, referencing decreased oil shipments from Kazakhstan following a Ukrainian drone attack on a loading facility.
Both contracts had risen about 1% in the previous trading session. Among economists surveyed from November 28 to December 4, 82% anticipated a 25-basis-point interest rate cut at the upcoming Federal Reserve meeting, which could boost economic growth and oil demand.
"Looking forward, supply factors remain crucial. A peace agreement with Russia would introduce more barrels to the market, likely lowering prices," Pham noted. "Conversely, any geopolitical tensions could push prices higher. OPEC+ has decided to maintain production levels until early next year, which also offers some price support," he added.
Markets were also preparing for a possible U.S. military action in Venezuela after President Donald Trump indicated that the U.S. would soon take steps to combat Venezuelan drug trafficking on land. Rystad Energy remarked that such action could jeopardize Venezuela's 1.1 million barrels per day of crude oil output, mainly destined for China.
Additionally, prices received a lift this week from the lack of substantial progress during U.S. talks in Moscow concerning the Ukraine conflict, which might have included a deal to allow Russian oil back into the market. These factors helped maintain price support despite a rising surplus.
According to a document reviewed by Reuters on Thursday, Saudi Arabia had lowered its January Arab Light crude selling prices to Asia, reaching the lowest level in five years due to oversupply.
Brent crude decreased by 3 cents, or 0.05%, to $63.23 per barrel by 0745 GMT, remaining relatively stable over the week. Meanwhile, U.S. West Texas Intermediate fell 10 cents, or 0.17%, to $59.57 per barrel, but achieved a weekly gain of approximately 1.7%, marking its second consecutive week of increases.
"The market is considering the effects of reduced CPC exports and some encouraging demand signals, along with a potential Fed rate cut," stated Anh Pham, a senior research specialist at LSEG, referencing decreased oil shipments from Kazakhstan following a Ukrainian drone attack on a loading facility.
Both contracts had risen about 1% in the previous trading session. Among economists surveyed from November 28 to December 4, 82% anticipated a 25-basis-point interest rate cut at the upcoming Federal Reserve meeting, which could boost economic growth and oil demand.
"Looking forward, supply factors remain crucial. A peace agreement with Russia would introduce more barrels to the market, likely lowering prices," Pham noted. "Conversely, any geopolitical tensions could push prices higher. OPEC+ has decided to maintain production levels until early next year, which also offers some price support," he added.
Markets were also preparing for a possible U.S. military action in Venezuela after President Donald Trump indicated that the U.S. would soon take steps to combat Venezuelan drug trafficking on land. Rystad Energy remarked that such action could jeopardize Venezuela's 1.1 million barrels per day of crude oil output, mainly destined for China.
Additionally, prices received a lift this week from the lack of substantial progress during U.S. talks in Moscow concerning the Ukraine conflict, which might have included a deal to allow Russian oil back into the market. These factors helped maintain price support despite a rising surplus.
According to a document reviewed by Reuters on Thursday, Saudi Arabia had lowered its January Arab Light crude selling prices to Asia, reaching the lowest level in five years due to oversupply.