Oil rises after the re-imposition of US sanctions on Venezuelan oil

Oil prices rose in early trading on Thursday, slightly paring losses from the previous session, after the United States said it would reimpose oil sanctions on Venezuela at a time when the European Union signaled new sanctions on Iran.

By 0053 GMT, Brent crude futures rose ten cents, or 0.11 percent, to $87.39 per barrel, while US crude futures rose two cents to $82.71 per barrel. The two benchmarks fell by three percent during the previous session amid concerns about demand.

The United States said it would not renew a license that expires on Thursday that broadly eases the impact of oil sanctions on Venezuela, moving to reimpose punitive measures after President Nicolas Maduro failed to fulfill his election pledges.

Venezuela exported 600,000 barrels per day in the first quarter, of which 165,000 barrels per day went to the United States. She explained that given that the quantities are modest, the impact is likely to be “small.”

There is still a state of uncertainty about how Israel might respond to Iran after Tehran’s missile and drone attack on Israel. In an effort to prevent a broader conflict, European Union leaders decided on Wednesday to tighten sanctions on Iran.

According to JP Morgan estimates, average global oil consumption since the beginning of April until now has reached 101 million barrels per day, two hundred thousand barrels per day less than its own expectations.