(RTTNews) – Crude oil rose on Friday after reports the US was planning to attack Venezuelan military installations, halting losses on news OPEC was preparing to increase output by 137,000 barrels per day in December.
WTI crude oil for December delivery was last seen trading up $0.41 (or 0.68%) at $60.98 a barrel.
US President Donald Trump has long accused the Venezuelan government, especially the military, of having ties to the drug trade, which paves the way for free drug entry into the US.
The Miami Herald reported that the US has identified military installations in Venezuela where it could attack as part of its anti-narcotics measures. Any such attack could disrupt oil supplies from Venezuela.
Although the White House denied these reports, it helped push oil prices higher.
Despite no official data tracking the economy, the US Federal Reserve cut interest rates by 25-basis-point on October 29.
Following the announcement, US Federal Reserve Chairman Jerome Powell cautioned investors that another rate cut in December is not a foregone conclusion. Powell also indicated that Fed officials differ in their opinions on cutting interest rates, and as a result, these comments helped the US dollar gain ground.
A stronger dollar and data showing weak factory activity in China weighed on prices ahead of this weekend’s OPEC+ meeting to discuss output policy.
A recent meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea resulted in a temporary tariff truce, with China agreeing to buy more US energy. This has raised new hopes for smooth trade relations between the world’s two major oil consumers.
However, China’s weak economic data limited the gains from this ceasefire. China’s NBS composite PMI output index fell to 50.0 in October 2025 from 50.6 in the previous month.
While the official NBS Manufacturing PMI fell to 49.0 in October 2025 (down from 49.8 in September) the official NBS Non-Manufacturing PMI stood at 50.1 in October 2025 (unchanged from September’s 10-month low of 50.0).
Reportedly, OPEC may announce an increase of 137,000 barrels per day for December at the November 2 meeting later this week. Concerns about oversupply also initially pushed prices lower.
Russia is aggressively launching a full-scale attack on Ukraine. In its latest overnight attack involving 650 drones and 50 missiles, it targeted nuclear power plants in southern Ukraine and Khmelnitsky and Rivne, causing serious damage.
A week earlier, the US had announced new sanctions targeting Russia’s two largest oil companies, Rosneft and Lukoil, in an effort to pressure Russia into negotiating a peace deal in Ukraine. The two Russian oil companies export 3.1 million barrels of oil a day.
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