Oil prices were little changed Friday, remaining near a one-month high and heading for a third consecutive weekly gain amid concerns of a tightening supply.
At 06:40 ET (10:40 GMT), Brent Oil Futures expiring in April weakened 0.2% to $73.19 per barrel, and West Texas Intermediate (WTI) crude futures were 0.2% lower to $69.80 per barrel.
Both contracts were on track to rise over 2% for the week, marking their third consecutive weekly gain, driven by U.S. threats of tariffs on countries purchasing Venezuelan oil and gas, along with declining U.S. crude inventories.
“Crude prices are trading almost flat this morning as the market remains cautious about softer demand and rising supply,” said analysts at ING, in a note.
U.S. President Donald Trump on Monday threatened to impose 25% tariffs on all imports from countries that purchase oil or gas from Venezuela, effective April 2.
Venezuela’s oil exports are a significant component of its economy, with China being its largest oil buyer. Other major buyers include the U.S. and India.
The announcement has raised concerns about potential disruptions in global oil supply chains and has contributed to higher oil prices.
Moreover, the U.S. Energy Information Administration’s (EIA) weekly report released on Wednesday, suggested a tightening supply in the crude oil market.
U.S. crude oil inventories decreased by 3.3 million barrels to 433.6 million barrels, a drawdown exceeding analysts’ expectations of a 956,000-barrel reduction.
Gasoline stocks fell by 1.4 million barrels, though the decline was slightly less than analysts’ expectations of 1.8 million barrels.
