LONDON: Oil prices edged higher on Thursday as investors weighed the prospect of further US sanctions on Russia and potential supply disruptions linked to a threatened blockade of Venezuelan oil tankers.
Brent crude rose 32 cents, or 0.54%, to $60 per barrel by 0910 GMT. US West Texas Intermediate crude gained 38 cents, or 0.68%, to $56.32 per barrel.
US intentions to impose additional sanctions on Russia, alongside President Donald Trump’s announcement of a blockade on tankers under sanctions carrying Venezuelan oil, helped push prices higher, analysts said.
Bloomberg reported on Wednesday that the US is preparing another round of sanctions targeting Russia’s energy sector if Moscow fails to agree to a peace deal with Ukraine, citing people familiar with the matter. A White House official later told Reuters that Trump had not yet made any decisions regarding new sanctions.
Analysts at ING said further restrictions on Russian oil could pose a greater supply risk to markets than the proposed Venezuelan blockade. The blockade could affect up to 600,000 barrels per day of Venezuelan oil exports, primarily to China, though around 160,000 bpd shipped to the US would likely continue under existing authorisations. Chevron vessels were still departing for the US under a previous government waiver.
Most other Venezuelan exports remained on hold, although state oil company PDVSA resumed loading crude and fuel cargoes after a cyberattack temporarily halted operations, according to sources and customs data.
It remains unclear how a US blockade would be enforced. The US Coast Guard last week seized a Venezuelan oil tanker, an unprecedented move, and sources said preparations were underway for further interdictions.
Venezuelan crude accounts for roughly 1% of global oil supply.
— Reuters
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