Oil Prices Rise 1% amid Venezuela Sanctions

Oil prices settled higher on Friday as markets weighed potential supply disruptions following U.S. sanctions on Venezuelan oil tankers and speculated on a possible peace agreement between Russia and Ukraine.

Brent crude gained 65 cents (1%) to close at $60.47 per barrel, while U.S. West Texas Intermediate (WTI) rose 51 cents (0.9%) to $56.66 per barrel. Despite the gains, both benchmarks were down 1% for the week, following nearly 4% losses the previous week.

Oil Prices:

WTI Crude 56.52 +0.52 +0.93%

Brent Crude 60.47 +0.65 +1.09%

Murban Crude 62.04 +0.83 +1.36%

Louisiana Light 57.67 -0.85 -1.45%

Louisiana Light 57.67 -0.85 -1.45%

Gasoline 1.708 +0.007 +0.41%

Natural Gas 3.984 +0.076 +1.94%

Analysts at Ritbury & Associates Energy Consulting noted that oil made modest gains after earlier weekly lows, as markets awaited updates on Russian-Ukrainian peace talks and developments in Venezuela amid the Trump-era tanker sanctions.

The sanctions target Venezuelan vessels carrying crude and other petroleum products, adding pressure on President Nicolás Maduro’s regime. One sanctioned tanker carrying about 300,000 barrels of naphtha from Russia entered Venezuelan waters Thursday, while three other sanctioned vessels either halted or rerouted in the Atlantic.

The U.S. also imposed sanctions on members of Maduro’s family and close associates, intensifying diplomatic and economic pressure.

Analyst Tony Cicamore from IG Group said the uncertainty surrounding U.S. enforcement of the sanctions dampened risk premiums, negatively affecting oil prices.

Meanwhile, Venezuela, which produces roughly 1% of global oil supply, allowed two major non-sanctioned crude tankers to sail to China on Thursday.

Data from Baker Hughes showed that the number of active rigs in the Permian Basin, the largest U.S. shale oil formation, fell by three rigs to 246, the lowest level since August 2021. The rig count serves as an early indicator of future production, suggesting potential declines ahead.

Markets are balancing supply risks from Venezuela with potential positive developments from Russia-Ukraine diplomacy. Russian President Vladimir Putin indicated that the responsibility to move toward peace lies with Ukraine and Europe, while U.S. efforts under President Donald Trump seek to end Europe’s most intense conflict since World War II.