Mubasher: Oil prices went up on Wednesday, propped up by ongoing supply curbs from the Organization of Petroleum Exporting Countries (OPEC) and US sanctions against Iran and Venezuela.

By 8:31 am GMT, US Nymex crude futures rose 0.56% to $57.19 per barrel (pb), while international benchmark Brent futures went up 0.34% to $66.90 pb.

Supply cuts by a group of producers led by OPEC, including Russia, supported prices so far this year. The so-called OPEC+ alliance agreed late last year on trimming 1.2 million barrels per day (bpd) in an attempt to tighten market supply.

Furthermore, the implementation of US sanctions against oil exports from major producers Iran and Venezuela tightened, propping up prices.

In the Latin American nation, the worst power outage left hospitals grappling to maintain equipment running, food rotting and shipments from the main oil terminal stranded.

“Failures in the electrical system [are] likely to accelerate the loss of 700,000 barrels per day” in oil supply, Barclays bank said.

The oil market outlook was diverged, with downside price risk from economic growth worries and a surge in US crude outputs, while OPEC+ cuts and US sanctions against Iran’s and Venezuela’s hydrocarbon sectors boosted prices, National Australia Bank (NAB) said.

“On balance, we see a very gradual uptrend for oil this year, with Brent forecast to reach $70 per barrel by the end of the year,” NAB said.