(RTTNews) – Oil prices extended gains from the previous session on Friday amid fears of supply disruptions, given prospects of Russia-related sanctions, Trump’s seizure of Russian oil tanker, unrest in Iran, Iraqi nationalization moves, and a drone attack on a Russia-bound oil tanker near Turkey’s coast in the Black Sea.
Investors also await the outcome of U.S. President Donald Trump’s meeting with the heads of major U.S. oil companies later today to convince them to support his plans in Venezuela.
Trump said Thursday that the world’s largest oil companies had pledged to spend $100 billion to fulfil his promise of reviving Venezuela’s flagging oil sector.
WTI crude futures rose 0.6 percent to $58.10 after climbing more than 3 percent in the New York session overnight. Brent crude futures were up 0.6 percent at $62.34.
Oil prices remain on track for their third weekly gain, reflecting increased geopolitical tensions and fears of supply disruption.
Recent data from EIA showing a decline in U.S. crude inventories also allayed global oversupply concerns.
U.S. Republican Senator Lindsey Graham has said in a social media post that President Trump has approved a “Russia sanctions Bill” that proposes 500 percent tariffs on countries that purchase Russia’s oil, gas, uranium and other exports.
The U.S. has signaled an intensified crackdown on “shadow fleet” tankers and also suggested it could be involved in overseeing Venezuela for years.
Amid ongoing unrest and heightened tensions with Western countries, Iran’s Supreme Leader, Ayatollah Ali Khamenei, today said the Islamic Republic would not tolerate individuals acting as “mercenaries” for foreign powers.
The Iraqi government has approved a plan to nationalize operations at the West Qurna-2 oilfield to ensure uninterrupted oil production amidst U.S. sanctions against Russia’s Lukoil.
Elsewhere, a Russia-bound oil tanker was attacked by drones in the Black Sea, adding to mounting pressure on Russia’s shadow fleet.
Russian forces launched 278 missiles and drones at Ukraine overnight, targeting critical infrastructure.
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