Oil prices are on track to gain over 2% in the week ending March 28, amid tightening global supply due to US tariffs on Venezuelan oil buyers, restrictions on Iranian crude trade, and inflation concerns sparked by US President Donald Trump's economic policies.
The international benchmark Brent crude traded at $73.17 per barrel at 2.01 p.m. local time (1101 GMT) on Friday, up by around 2.02% from last week's closing price of $71.72 per barrel.
West Texas Intermediate (WTI), the American benchmark, traded at $69.79 per barrel at the same time on Friday, up about 4.3% from last Friday's closing price of $66.91 per barrel.
Prices held near one-month highs on Friday amid tightening global supply concerns following US tariffs on Venezuelan oil buyers and restrictions on Iranian crude trade.
Trump announced plans to impose a 25% tariff on countries purchasing oil or gas from Venezuela starting April 2.
Venezuela's oil exports remain a key pillar of its economy, with China serving as its largest buyer. He also announced a 25% tariff on all imported automobiles and spare parts.
China, already a target of US import tariffs, criticized the move, as it, along with India, is one of the biggest buyers of Venezuelan crude aside from the US.
Last week, Washington also imposed a new round of sanctions on Iran's oil sales, targeting 19 entities and vessels linked to Iranian oil exports, including a Chinese oil terminal for purchasing and storing Iranian crude from a sanctioned vessel.
Market participants remain cautious about the broader economic impact of these measures, as higher vehicle prices could suppress car sales and reduce manufacturing activity, potentially leading to lower fuel demand.
Meanwhile, the American Petroleum Institute reported a 4.6 million barrel fall in US commercial crude oil stocks last week, surpassing market expectations of a 2.5 million barrel decline. The significant inventory drawdown suggests strengthening demand.
Moreover, unresolved tensions between Russia and Ukraine, despite US-mediated peace efforts, continue to support upward price movements by heightening market concerns over supply security.
The second round of US-Russia talks on the Ukraine conflict may take place in the Saudi capital Riyadh in mid-April, Russia's state-run TASS news agency reported.
Technical consultations will continue, though the next meeting is still being arranged, it said.
The first round was held on March 24 in Riyadh, where the sides discussed reviving the Black Sea grain deal.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr