Oil prices stayed near a two-week high on Friday, lifted by rising worries over tensions in key oil-producing regions, even as concerns about demand lingered.
Prices for benchmark oil were around $63.31 per barrel, steady from the previous day and on track for a small weekly gain.
Traders are closely watching Venezuela after U.S. President Donald Trump indicated that action against the country’s oil industry could happen soon. Analysts warn that any escalation could affect about 1.1 million barrels of oil per day from Venezuela, a significant portion of global supply.
Tensions over the Ukraine conflict also helped keep prices higher. Talks in Moscow between the U.S. and Russia have made little progress, and Ukraine continues to target Russian energy infrastructure, raising uncertainty about how much oil Russia will be able to supply soon.
Expectations that the U.S. may cut interest rates, which could boost economic activity and increase fuel demand, added more support to oil prices.
Still, gains were limited by signs of weaker demand and extra supply. Saudi Arabia lowered its January Arab Light crude price for Asia to the lowest in five years, while Canadian oil prices fell to their weakest level since March, keeping a lid on overall price gains.
Over the past month, oil prices have fallen slightly, and they are down nearly 11% compared with a year ago, according to trading data.
Even with recent increases, prices remain far below the all-time high of $147.50 per barrel reached in July 2008.
