Oil prices edged higher as traders weighed the risk of supply disruptions tied to a potential U.S. blockade of Venezuelan tankers, while awaiting clarity on efforts to end the Russia-Ukraine war. Brent crude rose 65 cents, or 1.1%, to $60.47 a barrel, while WTI gained 51 cents, or 0.9%, to $56.66.
Despite the day’s gains, both benchmarks were down about 1% on the week, following losses of roughly 4% last week, underscoring persistent oversupply concerns.
Refining margins remained under pressure, with U.S. gasoline futures recently sliding to a four-year low and crack spreads falling to their weakest levels since February. Analysts said crude prices are stabilizing just above recent lows as markets look for direction from developments in Ukraine peace negotiations and further signals on how aggressively the U.S. may enforce restrictions on Venezuelan oil shipments.
Geopolitical uncertainty continued to drive sentiment. European leaders agreed to provide additional financial support to Ukraine, while Russia showed little sign of compromise on its terms for ending the conflict. Ukraine also expanded attacks on Russian-linked oil shipping, highlighting growing risks to energy infrastructure tied to the war.
On Venezuela, uncertainty remains around enforcement of Washington’s proposed tanker blockade. While tensions have increased, some cargoes continue to move, and mixed signals around sanctions enforcement have limited the risk premium in crude markets. Venezuela accounts for roughly 1% of global oil supply, keeping its role important but not dominant.
In the U.S., production concerns resurfaced as the Permian Basin rig count fell to its lowest level since August 2021, a development that could signal slower output growth ahead if the trend persists.