Oil prices rose slightly in early trading on Thursday, paring losses from the previous session after the United States said it would reimpose oil sanctions on Venezuela and the European Union signaled new sanctions on Iran.
price movement
Brent crude futures were up 10 cents, or 0.11 percent, at $87.39 a barrel by 0053 GMT, while U.S. crude futures were up 2 cents, or 0.11 percent, at $82.71 a barrel. Both benchmarks fell 3 percent in the previous session amid demand concerns.
The United States said it would not renew a license that expires on Thursday and broadly eases oil sanctions on Venezuela, moving to reimpose punitive measures after President Nicolas Maduro failed to deliver on election pledges.
Continued supply risks should help support commodity markets, despite easing tensions in the Middle East, ANZ Research said in a note.
According to ANZ, Venezuela exported 600,000 barrels per day in the first quarter, of which 165,000 barrels per day went to the United States. It explained that given the modest volumes, the impact is likely to be small.
There remains uncertainty about how Israel might respond to Iran after Tehran launched missile and drone attacks on Israel. In a bid to prevent a wider conflict, European Union leaders decided on Wednesday to tighten sanctions on Iran.
According to JP Morgan estimates, global oil consumption since the beginning of April has averaged 101 million barrels per day, which is 200,000 barrels per day less than its own expectations.
