Oil prices were stable on Friday as investors weighed potential supply risks from developing geopolitical tensions in a thin post Christmas session, after the United States (US) carried out airstrikes against Islamic State militants in Nigeria and put more economic pressure on Venezuelan oil.

Brent crude futures fell 2 cents to $62.22 per barrel.

US West Texas Intermediate (WTI) crude was up 6 cents at $58.41.

The US on Thursday carried out a strike against Islamic State militants in northwest Nigeria’s Sokoto state in co-ordination with the Nigerian government, US President Donald Trump said.

“Nigerian strikes touted by Trump are targeting Islamic State and not specifically impacting any crude pipelines or oil terminals. Thus traders are staying on the sidelines in this thin liquidity market on Boxing Day,” said June Goh, Senior Oil Market analyst at Sparta Commodities.

Major oil producer Nigeria’s oilfields and export infrastructure are mainly located in the south of the country.

The White House ordered its military forces to focus on a “quarantine” of Venezuelan oil for at least the next two months, indicating Washington is currently more interested in using economic rather than military means to pressure Caracas.

Supply disruptions have helped oil prices rebound in recent sessions from their near five-year low on December 16.

Nonetheless, prices are on course for their steepest annual decline since 2020, with Brent and WTI down 17% and 19% respectively versus the final close of 2024, as rising oil output has caused concerns of an oil glut heading into next year.

–Reuters–