Oil prices rise on uncertainty over Venezuela’s oil supply
Oil prices rose Friday, bouncing after sharp losses in the previous session, supported by a report that the U.S. is preparing to intercept more tankers carrying Venezuelan oil, stoking supply disruption worries.
At 04:40 ET (09:40 GMT), Brent Oil Futures expiring in February rose 0.2% to $61.40 per barrel and West Texas Intermediate (WTI) crude futures gained 0.2% to $57.69 per barrel.
Both contracts declined 1.5% on Thursday, hitting over a seven-week low on Ukraine peace prospects and rising U.S. gasoline and distillate inventories.
Oil was set to lose more than 3% this week.
U.S. reportedly plans more seizures off Venezuela’s coast
Prices firmed after a Reuters report, citing sources, said the U.S. is readying additional interdictions following this week’s seizure of the tanker Skipper off Venezuela’s coast.
The potential move marks a significant escalation in Washington’s sanctions enforcement and has prompted shipowners to reassess voyages involving Venezuelan crude, the report said.
The U.S. has assembled a target list of several more sanctioned tankers for possible seizure, the report added.
The prospect of further disruptions to sanctioned flows added a risk premium to the market, helping Brent and West Texas Intermediate recover some ground.
Gains capped by Ukraine peace prospects
However, gains remained capped as attention turned back to ongoing diplomatic efforts between Russia and Ukraine.
The leaders of Britain, France and Germany held a call on Wednesday with U.S. President Donald Trump to discuss Washington’s latest peace efforts to end the war in Ukraine, in what they said was a "critical moment" in the process.
Any progress toward a negotiated settlement could eventually reshape sanctions policy on Russian energy exports and shift expectations around global supply.
Earlier this week, oil eased when early signs of movement in the talks emerged, underscoring the market’s responsiveness to any de-escalation signals.
Uncertainty over European geopolitical diplomacy has kept crude directionally constrained.
Source: Investing.com
