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Oil inches up after U.S. reimposes Venezuela oil sanctions

Oil prices increased in early trade on Thursday, slightly paring the previous session's losses after the United States stated it would reinstate oil sanctions Venezuela, while the European Union talked of fresh curbs on Iran.

Brent futures were up 10 cents, or 0.11%, at $87.39. a barrel, while U.S. crude futures traded 2 cents greater. at $82.71 a barrel at 0053 GMT. The two benchmarks slid 3% in. the previous session on demand worries.

The U.S. stated it would not renew a license set to expire on. Thursday that had broadly relieved Venezuela oil sanctions, moving. to reimpose punitive steps in reaction to President Nicolas. Maduro's failure to fulfill his election dedications.

Continuous threats to supply must help support product. markets, despite alleviating stress in the Middle East, ANZ. Research said in a note. An enhancement in threat hunger saw. some buying go back to the product sector.

Venezuela exported 600,000 barrels per day (bpd) in the. first quarter, of which 165,000 bpd were predestined for the United. States, ANZ Research study stated, including that as volumes are moderate,. the effect is most likely to be 'little'.

Uncertainty remained over how Israel may retaliate. against Iran after Tehran's rocket and drone attack on Israel. Seeking to prevent a larger conflict, European Union leaders. selected Wednesday to step up sanctions versus Iran.

The U.S. Legislature will vote on long-expected. aid bundles for Ukraine, Israel and the Indo-Pacific on. Saturday to supply over $95 billion in security help,. including $61 billion to resolve the conflict in Ukraine.

Keeping a lid on the oil market, a Federal Reserve study. revealed on Wednesday that U.S. financial activity broadened. slightly from late February through early April and companies. signified they anticipate inflation pressures to hold constant. That. continued current patterns that have kept the reserve bank from. being able to cut interest rates.

According to JP Morgan approximates, worldwide oil consumption. so far in April has actually averaged 101 million bpd, or 200,000 bpd. listed below its own projection.

(source: Reuters)