Oil prices steady as US sanctions and inventory drop provide support

Crude oil prices remained steady near USD 70 per barrel, supported by supply-side concerns and geopolitical tensions.

The U.S. has intensified efforts to limit oil exports from Venezuela and Iran, with sanctions targeting countries that continue to purchase Venezuelan crude.

Tensions in the Middle East also added to the risks.

While these developments have introduced some supply risk, the overall impact on global crude prices has been contained as concerns over a global economic slowdown offset the supply disruption risks. The outlook remains cautious while U.S. tariffs continue to threaten demand expectations.

Meanwhile, a drop in U.S. crude inventories supported prices in the short term, reflecting potentially strong domestic fuel demand. However, this price support could be temporary if global economic conditions worsen or production from major oil producers rises.

At the same time, a U.S.-brokered pause in hostilities between Ukraine and Russia could help stabilize the market. However, if tensions re-escalate, oil price volatility could increase.