Oil prices rose slightly as markets reacted to potential disruptions from a US blockade of Venezuelan tankers, while also awaiting updates on a possible Russia-Ukraine peace deal. Brent crude futures increased by 65 cents, or 1.1%, settling at $60.47 per barrel, and US West Texas Intermediate (WTI) crude rose 51 cents, or 0.9%, to $56.66 per barrel.

Meanwhile, US gasoline futures fell to a four-year low, which lowered refining profit margins, measured by gasoline crack spreads, to their lowest point since February. Analysts at energy advisory firm Ritter Busch and Associates said the oil market was posting modest gains, staying above recent lows as it awaited news on Ukraine-Russia negotiations and developments in Venezuela, including the potential tanker blockade announced by former President Trump.

European Union leaders decided to borrow 90 billion euros ($105 billion) to fund Ukraine’s defense over the next two years rather than attempt a controversial plan to use Russian sovereign assets. Russian President Vladimir Putin offered no compromise on ending the conflict and accused the EU of trying to seize Russian funds. Ukraine, in response, struck a Russian “shadow fleet” oil tanker in the Mediterranean using aerial drones, marking the first such attack and reflecting the intensifying conflict over energy shipments.

In the Caribbean, US Secretary of State Marco Rubio said Washington is not concerned about escalating tensions with Russia over Venezuela, even as the Trump administration builds military forces in the region.

Uncertainty over how the U.S. might enforce a tanker blockade kept geopolitical risk premiums in check, according to IG analyst Tony Sycamore. Venezuela, which produces about 1% of global oil supplies, recently allowed two unsanctioned cargoes to sail for China. Meanwhile, a sanctioned Russian tanker carrying 300,000 barrels of naphtha entered Venezuelan waters, and three other sanctioned ships either stopped or changed course. The U.S. also imposed sanctions on family members and associates of Venezuelan President Nicolas Maduro.

In US oil production, the Permian Basin rig count, which signals future output, fell by three this week to 246, the lowest since August 2021. This decline may point to a slowdown in future oil production.

Reporting by Scott DiSavino in New York and Anna Hirtenstein in London, with additional reporting by Enes Tunagur and Sudarshan Varadhan. Editing by Alexander Smith, Matthew, and Diane Craft.