Oil recovers from 3-week low after US imposes sanctions on Venezuela, Iran; Brent at $87/bbl

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Also Read:Iran's crude oil output up 20% in 2 years at 3.3% of global supply: What does this mean for the Iran-Israel proxy war? Brent futures were up 10 cents, or 0.11 per cent, to $87.39 a barrel, while US crude futures were 26 cents higher, or 0.31 per cent, at $82.95 a barrel. Both benchmarks had dropped over $1 at their intra-day lows, touching their weakest in around three weeks. Coming to domestic prices, crude oil futures were up 0.5 per cent higher at ₹6,969 per barrel on the multi commodity exchange (MCX).

-The US also announced sanctions on Iran targeting the country's unarmed aerial vehicle production after its drone strike on Israel last weekend. But additional sanctions avoided Iran's oil industry. Iran is the third largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC).

-Earlier in the day, Iran had said it could review its nuclear doctrine in response to retaliatory Israeli threats --extending the ongoing conflict, which could have provided some support to oil prices, according to analysts. Also Read: UK vs US: Which superpower will first cut interest rates in 2024? Here's what inflation indicates -The news comes after investors had been largely unwinding the geopolitical risk premium in oil prices in the last three sessions - during which Brent lost around 3.5 per cent - on the perception that any Israeli retaliation to Iran's attack on April 13 will be moderated by international pressure. -Meanwhile, US jobless claims were unchanged at low levels last week, pointing to continued labor market strength which is driving the economy and postponing the prospect of U.S.

rate cuts until September. -Surging US crude inventories also pressured prices on Wednesday. Oil inventories