Oil prices were set to rise for a third week on Friday, as the US stepped up pressure on Venezuela and Iran, although concerns about whether Washington's tariff war could curb demand weighed on markets, UNN wrote, citing Reuters.
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Brent crude futures remained at $74.03 a barrel at 12:35 GMT (14:35 Kyiv time), while WTI crude futures rose 1 cent to $69.93 a barrel.
Both brands have risen in price by about 2.5% this week and have risen by about 7% since reaching multi-month lows in early March.
The main driving force behind the price rally was a change in the landscape of global oil sanctions, BMI analysts wrote in a market commentary.
US President Donald Trump announced new 25% tariffs on potential buyers of Venezuelan crude oil on Monday, days after US sanctions targeting China's imports from Iran.
This decree has exacerbated uncertainty for buyers and led to a halt in trade of Venezuelan oil with the largest buyer, China. Sources also reported that Indian company Reliance Industries, operator of the world's largest oil refining complex, will stop importing Venezuelan oil.
"The potential loss of Venezuelan crude oil exports to the market due to secondary duties and the possibility that they will be imposed on Iranian barrels have caused an apparent shortage of crude oil supplies," said Jun Go, senior oil analyst at Sparta Commodities.
Oil was also supported by signs of improving demand in the US, the world's largest oil consumer, amid a larger-than-expected drop in the country's crude oil inventories.
With the beginning of April next week, OPEC+ will begin its program of monthly increase in oil production.
The group, which includes OPEC and allies led by Russia, is likely to continue to increase oil production in May, Reuters reported on Monday.
OPEC+ is simultaneously trying to increase production targets for members who have disciplinedly met their previous targets, while simultaneously putting pressure on other producers who have exceeded their targets to curb production and pump below the target for some time to compensate for this.
Some downward pressure arose as oil mirrored a broader sell-off of risky assets on Friday, as Trump's latest tariff salvo heightened investors' concerns about a full-blown trade war.
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As a result, analysts do not expect the sharp rise in oil prices to continue in the current environment.
"Although the market is suffering from extreme uncertainty, we are sticking to our forecast for an average Brent oil price of $76 per barrel in 2025, which is below $80 per barrel in 2024," BMI analysts write.