Oil prices rose on Thursday following reports that the U.S. was preparing new sanctions on Russian oil if Moscow does not agree to a Ukraine peace deal, as market participants assessed the supply risks posed by a blockade of Venezuelan oil tankers.

U.S. West Texas Intermediate (WTI) crude was up 44 cents, or 0.79%, at $56.38 per barrel at 0256 GMT, paring some gains after initially rising more than a dollar after the market opened. Brent crude rose 42 cents or 0.7% to $60.10 per barrel.

On Wednesday, Bloomberg reported that the U.S. is preparing another round of sanctions on Russia's energy sector in case Moscow doesn't 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.

The Venezuela blockade puts at risk 600,000 barrels per day (bpd) of Venezuelan oil exports, mostly to China, but 160,000 bpd of exports to the U.S. will likely continue, ING said. Chevron vessels were continuing to depart for the U.S. under a previous authorisation from the U.S. government.

Reuters