09:11 AM EST, 12/13/2024 (MT Newswires) -- Oil prices moved higher early on Friday, rebounding from day-prior losses, at the end of a week dominated by expectations that rising supply is ready to top demand and new sanctions on Russian exports.

West Texas Intermediate crude oil for January delivery was last seen up US$0.38 to US$70.40 per barrel, while February Brent oil was up US$0.41 to US$73.82. Both have been trading within a narrow range

Both the Energy Information Agency and the International Energy Agency said this week they expect production to begin rising above demand in 2025 on higher output from North and South America, even as OPEC+ continues to restrict production.

The looming threat of over supply is offset by geopolitical concerns, as Donald Trump's return to the U.S. presidency raises worries over his threats to apply blanket tariffs on imports that could disrupt global trade. Continuing Middle East violence and Russia's war in Ukraine are also supporting a risk premium.

The outgoing Biden Administration and the European Union are applying further sanctions on Russian oil exports as they targets the 'shadow fleet' of tankers that shipping the country's oil in defiance of existing sanctions.

"The latest attempts to constrain Russia and its hard-core buyers ... raises two salient questions: can they be effectively enforced to meaningfully reduce the amount of available oil and lead to supply shortage and keeping in mind Donald Trump's pledge to end the Ukrainian war in "24 hours" will they remain in place after January 20," PVM Oil Associates noted.