Oil headed for weekly gain on US strikes in Nigeria and Venezuela tensions

Oil prices rose on Friday and were headed for their biggest weekly gain since late October after the US carried out military strikes in Nigeria, a major oil producer, while continuing geopolitical tensions between the US and Venezuela also stoked supply concerns.

Brent, the benchmark for two thirds of the world's oil, was up 0.11 per cent at 9.06am UAE time at $62.31 a barrel, while West Texas Intermediate, the gauge that tracks US crude, was trading 0.12 per cent higher at $58.43 a barrel.

The US on carried out military strikes against ISIS militants in north-west Nigeria, President Donald Trump said on X, accusing the group of targeting Christians in the region.

“The Department of War executed numerous perfect strikes, as only the United States is capable of doing,” Mr Trump said.

There have been no reports of obstructions to oil flows from Nigeria, an Opec member, but these strikes raise potential supply concerns. US Defence Secretary Pete Hegseth said on X that there was “more to come”.

Nigeria produced about 1.5 million barrels per day in November, according to Opec's monthly report. Its oilfields are mainly concentrated in the Niger Delta located in the south of the country.

Meanwhile, the continuing geopolitical tensions between the US and Venezuela, another Opec member, are also affecting oil prices. Last week, the US ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, putting oil flowing out of the South American country at risk.

The US has seized two oil tankers off the Venezuelan coast this month as the Trump administration continues to put pressure on President Nicolas Maduro and his government.

Mr Trump said the US will keep or sell the crude it has seized. The US is also pursuing a third Venezuelan oil tanker.

Venezuela produces 1.1 million barrels of oil a day, with most of it going to China and India, according to Rystad Energy analysis.

“Prices for the commodity have rallied earlier this