Oil prices steady as market assesses mounting risks to supply

Oil prices edged marginally higher on Thursday as investors assessed the likelihood of further U.S. sanctions against Russia and the supply risks posed by a blockade of Venezuelan oil tankers.

Brent crude was up 36 cents, or 0.6%, to $60.04 per barrel at 12:11 p.m. ET (1711 GMT). U.S. West Texas Intermediate crude was up 52 cents, or 0.9%, at $56.46 per barrel.

"Crude futures are trying to find support from the Venezuelan oil export blockade, which if it continues will likely cause production in the area to be shut in with no destinations to ship out to," said Dennis Kissler, senior vice president of trading at BOK Financial.

On Wednesday, Bloomberg reported that the U.S. is preparing another round of sanctions on Russia's energy sector in the event Moscow does not agree to a peace deal with Ukraine, citing people familiar with the matter. A White House official told Reuters President Donald Trump had not made any decisions on Russian sanctions.

"If no Russia/Ukraine peace deal is reached, the attacks on Russia could escalate, quickly tightening supplies, and if you add in the blockade on Venezuelan oil, crude prices may very well be a bit underpriced here," Kissler said.