Brent crude futures were up 10 cents, or 0.11 percent, at $87.39 a barrel, while U.S. crude futures traded 2 cents higher at 82.71 dollars per barrel at 00:53 GMT. Both benchmarks slipped 3% in the previous session on demand concerns.
The United States said it would not renew a license that expires on Thursday that had largely eased oil sanctions on Venezuela, deciding to reimpose punitive measures in response to President Nicolas Maduro’s failure to meet his election pledges .
“Continuing supply risks should help support commodity markets, despite the easing of tensions in the Middle East,” ANZ Research said in a note. “An improvement in risk appetite has led to a return of buying in the commodities sector.”
Venezuela exported 600,000 barrels per day (bpd) in the first quarter, of which 165,000 bpd were destined for the United States, ANZ Research said, adding that as volumes were moderate the impact was likely to be “low”. “.
Uncertainty remained over how Israel might retaliate against Iran following Tehran’s missile and drone attack on Israel. Seeking to prevent a wider conflict, European Union leaders decided on Wednesday to strengthen sanctions against Iran. The U.S. House of Representatives will vote Saturday on highly anticipated aid plans for Ukraine, Israel and the Indo-Pacific, aimed at providing more than $95 billion in security assistance, including $61 billion for resolve the conflict in Ukraine. Keeping control of the oil market, a Federal Reserve survey showed Wednesday that U.S. economic activity increased slightly between late February and early April and businesses indicated they expected inflationary pressures to ease. maintain. This continues recent trends that have prevented the central bank from cutting interest rates.
Global oil consumption so far in April has averaged 101 million b/d, according to JP Morgan estimates, 200,000 b/d lower than its own forecast.
