Oil prices moved higher on Friday, recovering some of the losses suffered in the previous session, after reports suggested the United States may intensify efforts to intercept tankers transporting Venezuelan crude, raising fresh concerns about supply disruptions.
By 04:40 ET (09:40 GMT), Brent crude futures for February delivery were up 0.2% at $61.40 a barrel, while U.S. West Texas Intermediate (WTI) futures also gained 0.2% to trade at $57.69 a barrel.
The rebound followed a sharp sell-off on Thursday, when both benchmarks fell around 1.5% to their lowest levels in more than seven weeks. Prices were pressured by optimism surrounding potential peace talks in Ukraine, as well as increases in U.S. gasoline and distillate inventories. Crude was still on track to post a weekly decline of more than 3%.
U.S. signals tougher stance on Venezuelan oil
Oil markets found support after a Reuters report cited sources saying Washington is preparing additional interdictions of vessels carrying Venezuelan oil, following the seizure earlier this week of the tanker Skipper off Venezuela’s coast.
The report said the move would represent a notable escalation in U.S. enforcement of sanctions, prompting shipping companies to reconsider routes involving Venezuelan crude. U.S. authorities have reportedly drawn up a list of several other sanctioned tankers that could also be targeted.
The possibility of further disruptions to sanctioned oil flows injected a risk premium into prices, helping both Brent and WTI recover some ground.
Ukraine diplomacy limits upside
Despite the rebound, gains were restrained as investors continued to monitor diplomatic efforts aimed at ending the war in Ukraine.
Earlier this week, the leaders of the United Kingdom, France and Germany held discussions with U.S. President Donald Trump regarding Washington’s latest peace initiatives, describing the situation as a “critical moment” in the negotiations.
Any tangible progress toward a settlement could eventually lead to changes in sanctions on Russian energy exports and alter expectations for global oil supply. Earlier signs of movement in the talks had already weighed on crude prices this week, highlighting how sensitive the market remains to signals of de-escalation.
Ongoing uncertainty surrounding European geopolitical diplomacy has continued to keep oil prices range-bound.