Oil prices inched higher on Thursday as investors weighed the potential for additional U.S. sanctions on Russia alongside supply risks from a blockade of Venezuelan oil tankers. Brent crude rose 14 cents to $59.82, while WTI gained 21 cents to $56.15.
Traders are closely monitoring the Venezuelan blockade, which could shut in production if tankers under sanction have no destinations for shipment. Analysts noted that while 160,000 barrels per day of Venezuelan crude continue to flow to the U.S. under existing authorizations, roughly 600,000 bpd destined for China could be affected, representing about 1% of global supplies.
Meanwhile, reports suggested that the U.S. is preparing another round of sanctions on Russia’s energy sector if Moscow does not reach a peace deal with Ukraine. Further measures against Russian oil could create more significant supply risks than the Venezuelan blockade alone. The U.S. Coast Guard has already seized a Venezuelan tanker, and sources indicate additional interdictions may follow, although enforcement details remain unclear.
Analysts also noted that lower oil prices could reduce U.S. shale output. Bank of America projects that if WTI averages $57 per barrel in 2026, U.S. shale production could contract by about 70,000 bpd, slightly tightening global supply.