Oil prices were steady on Thursday as renewed concerns about the global economic outlook offset support from a USA threat of sanctions on OPEC member Venezuela.
Brent for March settlement advanced 35 cents to $60.74 a barrel on the London-based ICE Futures Europe exchange, and traded at a $7.78 premium to WTI.
With Iran already crippled by USA sanctions on its oil, a further drop in Venezuelan exports could squeeze global supply and rapidly push up prices.
The problem is that even though United States oil production has skyrocketed to record highs, America is not self-sufficient.
The response may have been delayed, but traders on Friday finally reacted to the crisis in Venezuela by causing crude prices to climb, albeit modestly, and all but completely ignored news of a spike in USA production that would have normally sent prices plummeting.
The political chaos in Venezuela could have a major impact on the global oil market.
USA sanctions on Venezuela could increase the cost of heavy crude, dealing a setback to American refineries, analysts warned.