Oil prices closed higher for a third consecutive week, marking the longest streak of weekly gains since June. The WTI settlement price approached $59 per barrel, with a cumulative increase of over 5% across two trading sessions. The rise in risk was particularly evident in the options market. For U.S. crude futures, the skew of call options relative to put options climbed to its highest level since July.

Developments in Iran have shifted market focus away from Venezuela. A statement from the U.S. administration, citing improved cooperation from Venezuela, led to the cancellation of a planned second round of military action against the country. This news caused a brief, slight dip in oil prices earlier.

High-level meetings were held at the White House with oil company executives, where it was indicated that the U.S. intends to decide which companies will be permitted to operate in Venezuela. It was also stated that "super-major" oil companies are prepared to invest $100 billion of their own capital.

Despite the third straight weekly advance for crude futures, the market anticipates a significant supply surplus this year, which is expected to exert downward pressure on prices in the coming months. Analysts at Goldman Sachs Group noted that their clients' bearish sentiment toward oil has reached its highest level in a decade.

"Crude oil remains caught in a complex tug-of-war between rising geopolitical risks on one side and steadily increasing inventories on the other," said Robert Rennie, Head of Commodity Research at Westpac Banking Corp.

He added that with increasing crude supplies from Venezuela and rising production from other regions, oil prices could fluctuate within the $50-per-barrel range during the first quarter. Oil prices declined by 18% last year.

On Friday, the WTI February futures contract rose 2.4%, settling at $59.12 per barrel.

The Brent March futures contract price increased by 2.2%, settling at $63.34 per barrel.