Oil Prices Rise Amid Supply Concerns as U.S. Tightens Export Restrictions

Oil prices continued their upward trend today, driven by mounting supply concerns and a sharper-than-expected drop in U.S. crude inventories. Market sentiment has been further affected by Washington’s renewed efforts to tighten sanctions and limit crude exports from Venezuela and Iran, two major oil-producing nations operating under international scrutiny.

Brent crude futures rose by 20 cents to settle at $73.22 per barrel, while West Texas Intermediate (WTI) advanced to $69.20 per barrel. Though the gains were modest, they underscore growing apprehension over potential supply disruptions in a fragile geopolitical environment.

Adding pressure to the market, the latest data from the U.S. Energy Information Administration (EIA) revealed a surprise drawdown of 4.6 million barrels in domestic crude inventories, contrary to analysts’ expectations of a slight build. The inventory decline suggests rising demand or constrained supply conditions at a time when global trade flows are facing new headwinds.

Energy analysts caution that if U.S. enforcement of sanctions intensifies, particularly around Venezuela's restructured oil-for-debt agreements and Iran's shadow fleet activities, further tightening in global supply could follow—potentially pushing prices closer to the $80 threshold seen earlier this year.

Meanwhile, downstream refiners and shipping sectors are closely watching developments, with some preparing for volatility in spot freight and fuel pricing in the coming weeks.

Market participants will now be looking ahead to key OPEC+ statements and upcoming economic indicators from major consuming economies to gauge how long the upward pressure on crude prices may persist.