Oil prices edged higher on Thursday as investors assessed the likelihood of additional U.S. sanctions on Russia’s energy sector and the potential supply disruptions linked to a proposed blockade of Venezuelan oil tankers.
Brent crude oil, the international benchmark for Nigerian crude oil, rose 32 cents, or 0.54 percent to $60 per barrel by 10:10 a.m, while U.S. West Texas Intermediate crude gained 38 cents, or 0.68 percent to $56.32 per barrel.
Market sentiment was supported by renewed concerns that tighter U.S. measures against Russia could further restrict global oil supplies.
Bloomberg reported that Washington is preparing another round of sanctions targeting Russia’s energy sector if Moscow fails to agree to a peace deal with Ukraine, citing sources familiar with the matter. A White House official later said President Donald Trump had not yet made a decision on additional sanctions.
Analysts said potential new restrictions on Russian oil exports could have a more significant impact on global supply than the recently announced U.S. plan to block tankers under sanctions entering and leaving Venezuela.
ING analysts noted that a full blockade of Venezuelan shipments could affect around 600,000 barrels per day of exports, primarily destined for China, although about 160,000 barrels per day shipped to the United States are expected to continue under existing authorisations.
Chevron-operated vessels were reported to be continuing exports to the U.S. under a prior waiver, while most other Venezuelan oil shipments remained on hold.
State-owned oil company PDVSA has since resumed loading crude and fuel cargoes after suspending operations due to a cyberattack, according to sources and customs data.
Enforcement of a U.S. blockade remains unclear. The U.S. Coast Guard last week seized a Venezuelan oil tanker in an unprecedented move, with sources indicating that further interdictions may follow.
Venezuelan crude accounts for roughly 1 percent of global oil supply, limiting the broader impact on the market.
However, analysts said the combination of Russia-related sanctions risk and uncertainty around Venezuelan exports continues to underpin oil prices in the near term.