WTI holds gains above $61.00 as US bars Chevron from exporting Venezuelan Oil

• WTI price gains ground due to increased supply risks following the US ban on Chevron from exporting Venezuelan Oil.

• Oil prices may struggle as OPEC+ is expected to increase additional Oil output of 411,000 barrels per day.

• The US may impose fresh sanctions on Russia in response to its recent drone attacks on Ukraine.

West Texas Intermediate (WTI) Oil price edges higher after registering losses in the previous session, trading around $61.10 per barrel during the European hours on Wednesday. Crude Oil prices appreciate due to increased supply risks as Chevron is barred by the Trump administration from exporting Venezuelan crude under a new authorization, which allows the US Oil major to keep assets in Venezuela but not to export Oil, per Reuters.

However, the upside of the Oil prices could be limited due to increased hopes of additional output of 411,000 barrels per day from OPEC+, the Organization of the Petroleum Exporting Countries and their allies. However, the group is expected to make no policy change at a scheduled meeting on Wednesday, though eight members of the group will hold talks on Saturday to make a final decision on the July output hike, three delegates within the group told Reuters.

Meanwhile, Russia continued its drone attacks on Ukraine, raising supply risks from one of the world’s largest producers. The United States may impose fresh sanctions on Russia this week after stalled peace negotiations in Ukraine, as President Trump voiced frustration with Russian President Putin.

Last week, US and Iranian delegations concluded a fifth round of talks in Rome, signaling limited progress. Both sides had many disagreements, notably over the issue of Iran's uranium enrichment, which was difficult to resolve. The failure of the US-Iran nuclear talks is expected to keep sanctions on Iran’s Oil in place.