Oil prices held near one-week highs on Wednesday on concerns about supply disruptions in Russia and the U.S., as markets awaited clarity on sanctions as Washington tries to broker a deal to end the war in Ukraine.

Brent crude futures rose 20 cents, or 0.3%, to settle at $76.04 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 40 cents, or 0.6%, to settle at $72.25.

That was the highest close for both crude benchmarks since Feb. 11.

"The market is trying to determine the three drivers that are bullish: Russia, Iran and OPEC," said BNP Paribas (OTC:BNPQY) commodity strategist Aldo Spanjer. "People are trying to figure out the impact of the announced sanctions and the actual ones."

Drone attacks on Russian oil infrastructure have reduced supply.

Russia said oil flows through the Caspian Pipeline Consortium (CPC), a key crude export route from Kazakhstan, were cut by 30-40% on Tuesday after a Ukrainian drone attack on a pumping station. A 30% cut would be equivalent to a loss of 380,000 barrels per day from market supply, according to Reuters calculations.

Russian President Vladimir Putin has suggested the CPC attack may have been coordinated with Ukraine's Western allies.

In the U.S., cold weather is threatening oil supplies, with the North Dakota Pipeline Authority estimating that output in the state could drop by as much as 150,000 barrels per day.

There is also speculation that the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia and Kazakhstan may decide to delay a planned increase in supply in April, said IG market analyst Tony Sycamore. (Newsmaker23)

Source: Investing.com