Oil up, but off highs as Trump warns new Russia sanctions possible

Oil prices were up on Friday but retreated from session highs after U.S. President Donald Trump threatened sanctions on Russia if it fails to reach a cease-fire with Ukraine.

Trump said in a post on Truth Social that he was "strongly considering" sanctions on Russian banks and tariffs on Russian products because its armed forces continue attacks in Ukraine.

Brent crude futures were up $1.10, or 1.58%, to $70.56 a barrel by 1605 GMT (10:05 CST). U.S. West Texas Intermediate futures were up $1.06, or 1.6%, at $67.42.

In early trade, Brent jumped as high as $71.40, while WTI hit $68.22 after Russia's Deputy Prime Minister Alexander Novak told reporters that the OPEC+ producer group will go ahead with its April increase but may then consider other steps, including reducing production.

"If you don't like the price of oil, wait a minute," said Phil Flynn, senior analyst with the Price Futures Group.

Flynn said oil prices moves on OPEC+ and possible Russia sanctions overwhelmed other news, including delays in Israel and Hamas seeking a permanent cease-fire.

"I think it's been overwhelmed by Russia news," Flynn said. "It's all Russia, Russia, Russia."

For the week, Brent was down 3.8%, set for its biggest weekly decline since the week of November 11. WTI is set to finish as much as 3.6% down for its biggest weekly drop since the week of January 21.

"The caution expressed by Mr Novak is simply another way of reiterating OPEC+'s conditionality clause relative to 'market conditions'. These conditions will dictate whether or not they keep to the plan of incrementally winding down their voluntary cuts," said Harry Tchilinguirian at Onyx Capital Group.