Crude Oil Prices Hit Three-Week High Amid Supply Tightness, Sanctions

Crude oil prices surged to a three-week high earlier today, driven by the latest U.S. oil inventory data from the American Petroleum Institute (API) and expectations of a tighter market due to Washington’s intensified sanctions on Iran and Venezuela.

At the time of writing, Brent crude was trading at $73.13 per barrel, while West Texas Intermediate (WTI) stood at $69.12 per barrel. The API reported on Tuesday that U.S. oil inventories declined by 4.6 million barrels in the week ending 21 March—nearly double the forecasted draw of 2.5 million barrels. Official inventory figures from the Energy Information Administration (EIA) are expected later today.

Earlier this week, President Donald Trump announced that any country importing Venezuelan crude would face a 25% tariff on all trade with the United States, with the new policy set to take effect next month. In response, crude loadings at Venezuelan ports slowed significantly, according to a Reuters report, raising concerns about tighter supply, particularly in the heavy crude market.

Data from TankerTrackers.com, cited by Reuters, revealed that three supertankers were loading at Venezuela’s largest oil terminal, the Jose port, while another berth remained unoccupied. No loadings were reported at the Bajo Grande port. Additionally, several tankers were waiting to load at Jose, while two vessels that had completed loading were still stationed in Venezuelan waters, according to TankerTrackers.com.

Although the Venezuelan sanctions are pushing oil prices higher, downward pressure is emerging from the geopolitical front. The United States, Russia, and Ukraine appear to have reached an agreement to suspend hostilities in the Black Sea and on energy infrastructure, though no timeline for implementation has been disclosed. As part of separately negotiated deals with Russia and Ukraine, Washington has pledged to advocate for the easing of sanctions on Russia.