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Oil prices ticked higher on Wednesday after the United States seized a sanctioned tanker off the coast of Venezuela, adding a modest risk premium to near-term supply expectations.

Brent settled 27 cents higher at $62.21 per barrel.

WTI ended the session up 21 cents at $58.46 per barrel. 

The interception marks a notable escalation in Washington’s pressure campaign and raised concerns about potential disruptions to Venezuelan exports, which already move through a narrow pool of sanction-exposed intermediaries. Traders said the market may react more sharply if the action signals broader enforcement that could impede outbound flows.

Fundamentals tempered the upside. The Energy Information Administration reported a 1.8-million-barrel draw in U.S. crude stocks, offset by a sizeable build in fuel inventories, a combination that kept sentiment cautious. Record-high U.S. production levels also continued to cap the market’s recovery.

A widely expected quarter-point rate cut by the Federal Reserve provided marginal support by reinforcing expectations for steadier U.S. economic activity, though officials offered no guidance on further easing.

Written by: Farid Muzaffar