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Oil prices rose in Asian trading on Friday, extending a strong rebound from the previous session as investors focused on the growing risk of supply disruptions in Russia and Iran amid escalating geopolitical tensions. The recovery came as fears of an immediate surge in Venezuelan crude supplies eased, helping stabilize sentiment after a volatile week in energy markets.
Brent oil futures for March delivery climbed 0.7% to $62.44 a barrel by 21:04 ET (02:04 GMT), while West Texas Intermediate crude futures also gained 0.7% to $58.03 a barrel. Both benchmarks returned to levels seen before last week’s U.S. military action in Venezuela, after rallying more than 4% in the previous session.
The rebound was further supported by encouraging inflation data from China, the world’s largest crude importer, which suggested that economic recovery momentum in the country is gradually strengthening. Signs of improving demand from China provided an additional tailwind for prices, although gains were partially capped by caution ahead of the closely watched U.S. nonfarm payrolls report due later on Friday, which could influence expectations for interest rates and broader risk appetite.
Russia and Iran Supply Disruptions in Focus
Concerns over potential supply disruptions in Russia and the Middle East remained a key pillar supporting oil prices. Military hostilities between Russia and Ukraine continued this week with no meaningful progress toward a ceasefire. A drone attack on a tanker bound for Russia in the Black Sea raised alarms about further disruptions to Russian crude flows linked to the ongoing conflict.
Adding to uncertainty around Russian supply, reports indicated that U.S. President Donald Trump is prepared to allow a bipartisan bill proposing stricter measures against countries conducting business with Russia. The move is aimed at increasing pressure on Moscow to seek a ceasefire, but it also raises the risk of tighter constraints on Russian energy exports.
Further complicating the outlook, Iraq’s government approved a plan to nationalize operations at the West Qurna 2 oilfield, one of the largest oilfields globally. The decision was seen as an attempt to avert disruptions stemming from U.S. sanctions on Russia, but it also underscored the fragile state of global supply chains amid rising geopolitical friction.
In the Middle East, concerns intensified over Iran’s oil production after widespread anti-government protests erupted across several major cities. The situation escalated this week as authorities imposed a nationwide internet blackout, heightening fears that prolonged unrest could disrupt Tehran’s crude output and exports.
Venezuela Supply Jitters Ease
Oil markets were also supported by easing concerns that U.S. intervention in Venezuela would lead to a rapid increase in global crude supplies. Earlier this week, President Trump said Venezuela would turn over up to $3 billion worth of oil to the United States and suggested that Washington planned to exert long-term control over the country.
However, sentiment shifted after the U.S. Senate voted on Thursday to advance a resolution aimed at limiting further military action against Venezuela without congressional approval. The move reduced the perceived likelihood of aggressive near-term intervention and helped cool fears of a sudden flood of Venezuelan oil hitting the market.
Analysts have also emphasized that even if U.S. involvement eventually leads to higher Venezuelan output, any meaningful increase is unlikely in the near term. Years of underinvestment, aging infrastructure, and heightened political instability are expected to delay production growth, despite Venezuela’s vast proven reserves.
Oil prices had initially slumped after the U.S. captured Venezuelan President Nicolas Maduro and signaled intentions to take control of the country’s oil industry. By Friday, however, crude had recouped all of those losses as markets reassessed the practical and political hurdles involved.
Broader Context Remains Challenging
Despite the recent rebound, oil prices are still coming off their worst annual decline in five years, having fallen sharply in 2025 amid persistent concerns over a potential supply glut in 2026. Rising output from OPEC and non-OPEC producers, combined with uneven global demand growth, continues to cloud the longer-term outlook.
For now, traders remain highly sensitive to geopolitical developments, with supply risks in Russia, Iran, and other key producing regions providing short-term support. However, upcoming U.S. economic data and evolving policy decisions are likely to remain decisive in shaping oil price direction in the weeks ahead.
