On Friday, oil prices held close to their highest levels in almost a month, setting themselves for a third straight weekly increase as a result of a global supply environment that is becoming increasingly restrictive. Following the imposition of tariffs by the United States on nations that purchase oil and gas from Venezuela, as well as limitations on the trading of Iranian oil, this new development has recently taken place.

As of 02:13 GMT, the price of a barrel of Brent crude futures had settled at $73.95, representing a modest decrease of 8 cents, which is equivalent to 0.1%. A reduction of 8 cents, which is equivalent to a decrease of 0.1%, was recorded by West Texas Intermediate crude futures in the United States, which ultimately settled at $69.84 per barrel as of 00:49 GMT.

When compared to the more significant increases totaling more than two percent that had been reported for both contracts up to this point in the week, the changes were insignificant. Following closely on the heels of sanctions imposed by the United States on China’s imports from Iran, President Donald Trump announced on Monday a new set of tariffs that increase the price of Venezuelan petroleum by 25 percent. These tariffs are intended at potential buyers of Venezuelan crude. Furthermore, the instruction brought about a new level of unpredictability for consumers, which ultimately led to a halt in the transfer of Venezuelan oil to China, which was the country’s biggest buyer.

Reliance Industries, which operates the largest refining complex in the world, is reportedly planning to bring an end to the importation of oil from Venezuela, as reported by many sources. As a result of the United States’ crude stockpiles falling more than anticipated, there were indications that demand in the United States, which is the top consumer of oil worldwide, was improving, which supported the price of oil. For the week that ended on March 21, crude oil stocks in the United States decreased by 3.3 million barrels, bringing the total to 433.6 million barrels.

This information comes from the Energy Information Administration (EIA). In contrast to the predictions made by analysts based on a poll conducted by Reuters, which projected a decrease of only 956,000 barrels, this reduction is significantly lower. Concerns about a potential economic slump, which might have a negative impact on oil demand, have been heightened as a result of an increase in the number of tariffs that the United States has imposed on trading partner nations. All of these factors indicate that the global dynamics surrounding oil trade are currently in a phase of greater uncertainty. As a consequence of this, economists believe that it is highly improbable that big increases in the price of oil will be maintained under the current circumstances.