Global oil prices closed slightly higher on Friday following a day of sharp fluctuations. Prices initially surged on reports that the U.S. might launch airstrikes against Venezuela within hours, then retreated after President Trump denied the claims on social media.

The benchmark WTI crude contract on the New York Mercantile Exchange rose $0.41 (0.68%) to settle at $60.57 per barrel. Brent crude gained $0.07 (0.11%) to close at $65.07 per barrel.

"Is this Donald Trump playing trick-or-treat?" remarked Phil Flynn, senior analyst at Price Futures Group, noting the President had similarly denied plans before authorizing strikes against Iran. "The market clearly reacted when Venezuela strike rumors first emerged. Any weekend attack would send prices soaring Monday."

The U.S. has deployed its largest carrier strike group, led by the USS Gerald Ford, off Venezuela's coast - a force disproportionate to recent counter-narcotics operations targeting small vessels in the Caribbean.

A strengthening U.S. dollar near three-month highs against major currencies made dollar-denominated commodities like oil more expensive for global buyers.

Meanwhile, sources indicate Saudi Arabia may cut December crude prices for Asian buyers to multi-month lows, signaling bearish sentiment. Both Brent and WTI fell over 2% in October as OPEC+ boosted output.

The supply cushion may offset potential disruptions from Western sanctions on Russian oil exports to India. A Reuters survey projects 2025 Brent averages at $67.99 (up $0.38 from prior estimate) and WTI at $64.83.

OPEC+ is reportedly leaning toward modest December production hikes ahead of Sunday's meeting. Saudi exports hit a six-month high of 6.407 million bpd in August, while U.S. output reached a record 13.6 million bpd last week.