Economy
Oil Prices Rise Despite Mounting Supply Risks
By Adedapo Adesanya
Oil prices edged marginally higher on Thursday as investors assessed the likelihood of further US sanctions against Russia and the supply risks posed by a blockade of Venezuelan oil tankers.
Brent crude was up 36 cents or 0.6 per cent to $60.04 per barrel and the US West Texas Intermediate (WTI) crude climbed 52 cents or 0.9 per cent to $56.46 per barrel.
Market analysts noted that crude futures are trying to find support from the Venezuelan oil export blockade, which if it continues will likely cause production in the area to be shut in with no destinations to ship out to.
According to the sources, the biggest oil storage hub and tankers at Venezuelan ports could fill up within 10 days, prompting production curbs.
Earlier this week, Reuters reported that some 11 million barrels of Venezuelan crude were stuck at sea amid the US escalation, prompting deeper discounts and demands from buyers for changes in the spot contracts, under which the oil was being sold.
The Venezuela blockade could affect 600,000 barrels per day of Venezuelan oil exports, mostly to China, but 160,000 barrels per day of exports to the US would likely continue, ING said. Venezuelan crude makes up around 1 per cent of global supplies.
Meanwhile, the US is preparing another round of sanctions on Russia’s energy sector in the event it does not agree to a peace deal with Ukraine.
Britain imposed sanctions on 24 individuals and entities as part of its Russia sanctions regime, including on Russian oil companies Tatneft and Russneft, a government notice showed on Thursday.
Further measures targeting Russian oil could pose a greater supply risk to the market than President Donald Trump’s announcement on Tuesday that the US would blockade tankers under sanctions entering and leaving Venezuela, ING analysts said in a note.
Oil prices will remain under pressure next year amid persistent concerns about a large oil glut in early 2026.
