Oil prices rose slightly on Friday due to increased US economic pressure on Venezuelan oil supplies and after the African nation’s authorities, in conjunction with the US, conducted airstrikes against Islamic State militants in Nigeria’s Sokoto state.
However, oil prices are headed for their steepest annual decline since 2020, as investors weigh US economic growth and the potential for supply disruptions, particularly in Venezuela.
With supply projected to outpace demand next year, Brent and WTI prices are forecast to fall by about 16% and 18% respectively this year—the biggest drop since the COVID-19 pandemic impacted oil demand.
