Oil prices hike as market weighs supply risks
'Supply-side disruptions have become the primary driver of oil prices,' says analyst Tong Chuan
Oil prices rose slightly on Friday, December 26, 2025, after tension for oil shipments rose.
Brent crude futures rose 6 cents, or 0.1%, to $62.30 per barrel at 0456 GMT. U.S. West Texas Intermediate (WTI) crude was also up 6 cents at $58.41.
"Due to the Christmas holiday closure, year-end market activity remained relatively subdued," said Tong Chuan, an analyst at Galaxy Futures.
"Supply-side disruptions have become the primary driver of oil prices," he added.
Oil prices, though, are on course for their steepest annual decline since 2020 as investors weigh U.S. economic growth and assess the risk of supply disruptions, including in Venezuela, reports Reuters.
Brent and WTI prices are on track to drop about 16% and 18%, respectively, this year, their steepest declines since the COVID pandemic hit oil demand, as supply is expected to outpace demand next year.
Oil shipments from Kazakhstan via the Caspian Pipeline are set to drop by a third in December to the lowest point since October 2024 after a Ukrainian drone attack damaged facilities at the main CPC export terminal, two market sources said on Wednesday, December 24, 2025.
The U.S. Energy Information Administration is due to release official inventory data on Monday, later than usual due to the Christmas holiday.
The reports indicate the data should give a picture of demand in the world's biggest oil consumer.
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