Oil prices hovered near one-month highs on Friday but edged lower as traders assessed a tightening global supply outlook following fresh United States tariffs and sanctions targeting oil exports from Venezuela and Iran.
By 3:25 pm AEDT (4:25 am GMT), Brent crude futures eased $0.05, or 0.1%, to $73.98 per barrel, while U.S. West Texas Intermediate crude futures slipped $0.04, or 0.1%, to $69.88 per barrel.
Fresh geopolitical tensions continued to drive market sentiment after United States President Donald Trump announced new 25% tariffs on countries purchasing Venezuelan crude. The move followed Washington’s decision to tighten sanctions on China’s imports of Iranian oil earlier in the week.
ANZ analysts noted: "U.S. sanctions on Iran’s oil industry are also taking effect. At least 11 U.S.-sanctioned tankers carrying Iranian oil are reportedly anchored off the coast of Malaysia, disrupting trade flows.
"Some of these vessels, holding nearly 17 million barrels, have remained offshore for over a month."
Meanwhile, U.S. Energy Information Administration (EIA) data showed a sharper-than-expected decline in crude inventories this week, as stockpiles fell by 3.3 million barrels to 433.6 million barrels for the week ending March 21, exceeding expectations of a 1.6 million barrel decline.
