RoydadNaft –  Oil prices remained steady on Friday as investors weighed potential supply risks from developing geopolitical tensions during a low-volume trading session following Christmas—after the U.S. conducted airstrikes against ISIS militants in Nigeria and imposed further economic pressure on Venezuelan oil.

According to Roydad Naft, Brent futures contracts had risen 12 cents, or 0.19%, to $62.36 per barrel by 10:16 GMT. U.S. WTI crude climbed 19 cents, or 0.33%, to $58.54.

Oil prices are on track for their largest annual decline since 2020, driven by increased production from OPEC+ and non-OPEC countries, raising concerns about a market surplus next year.

The U.S., in coordination with the Nigerian government, carried out an attack on Thursday against ISIS militants in Sokoto State in northwestern Nigeria, President Donald Trump announced.

John Gu, senior oil market analyst at Sparta Commodities, said: “The Nigeria strikes that Trump referenced targeted ISIS militants and did not specifically affect crude oil pipelines or terminals. As a result, traders have stayed on the sidelines in this low-liquidity market on Boxing Day.”

Nigeria’s oil fields and export infrastructure, as a major producer, are primarily located in the south of the country.

The White House has directed its military to focus on a “quarantine” of Venezuelan oil for at least the next two months, signaling Washington’s current preference for economic rather than military pressure on Caracas.

Tong Chuan, analyst at Galaxy Futures, said: “Due to the Christmas holiday shutdown, market activity has remained relatively quiet at year-end. Supply-side disruptions have become the main driver of oil prices.”

Investors will also monitor developments in the Russia-Ukraine peace process and its potential impact on future oil prices, as a peace agreement could lead to the lifting of international sanctions on Russia’s oil sector.

Ukrainian President Volodymyr Zelensky said on Friday that many decisions could be made before the New Year and that he hopes to meet with Donald Trump soon.

Axios reported that Trump will meet Zelensky on Sunday at Mar-a-Lago, citing a Ukrainian official.

Reuters was unable to immediately verify these statements.

Meanwhile, Russian President Vladimir Putin told a meeting with senior Russian business leaders that Russia may be open to territorial exchanges, according to the newspaper Kommersant.