Oil prices experienced an uptick on Friday, recovering from significant declines in the prior session, bolstered by a report indicating that the U.S. is gearing up to intercept additional tankers transporting Venezuelan oil, thereby heightening concerns over potential supply disruptions. At 04:40, Brent Oil Futures expiring in February increased by 0.2% to $61.40 per barrel, while West Texas Intermediate crude futures also saw a gain of 0.2%, reaching $57.69 per barrel. Both contracts experienced a decline of 1.5% on Thursday, reaching a level not seen in over seven weeks, influenced by the prospects of peace in Ukraine and an increase in U.S. gasoline and distillate inventories. Oil was poised to decline by over 3% this week.

The United States is said to be preparing for additional seizures in the waters off the coast of Venezuela. Prices strengthened following a report, which referenced sources indicating that the U.S. is preparing further interdictions in the wake of this week’s seizure of the tanker Skipper off the coast of Venezuela. The potential move signifies a notable intensification in Washington’s sanctions enforcement, leading shipowners to reevaluate their voyages concerning Venezuelan crude, according to the report. The United States has compiled a list of additional sanctioned tankers that may be subject to seizure, according to the report. The potential for additional interruptions to sanctioned flows has introduced a risk premium into the market, facilitating a recovery in Brent and West Texas Intermediate prices.

However, gains remained constrained as focus shifted back to the continuing diplomatic initiatives between Russia and Ukraine. The leaders of Britain, France, and Germany engaged in a discussion on Wednesday with U.S. President Donald Trump regarding Washington’s recent initiatives aimed at resolving the conflict in Ukraine, which they characterized as a “critical moment” in the ongoing process. Progress toward a negotiated settlement has the potential to reshape sanctions policy concerning Russian energy exports and alter expectations regarding global supply.

Earlier this week, oil prices softened as initial indications of progress in negotiations surfaced, highlighting the market’s sensitivity to any signals of de-escalation. The ambiguity surrounding European geopolitical diplomacy has resulted in a directional constraint on crude prices.