Oil prices dip slightly, set for weekly gains

Oil drilling rigs

Oil prices fell slightly on Friday but are on track for weekly gains, supported by rising tensions between the US and Venezuela, as well as increasing Ukrainian attacks on Russian energy facilities.

Brent crude futures for February delivery edged down 0.1% (6 cents) to $63.22 per barrel as of 8:58 a.m. Makkah time.

Meanwhile, WTI (Nymex) January futures slipped 0.15% (9 cents) to $59.58 per barrel.

In a note reported by Reuters, Rystad Energy warned that any potential US military action against Venezuela could threaten its production of approximately 1.1 million barrels per day, most of which is destined for China.

Prices were also supported this week by growing expectations of an imminent US interest rate cut next week, which could boost economic growth prospects and increase energy demand.