Oil rises 1.5% amid Trump’s Venezuela tanker blockade
Oil prices rose over 1% on Wednesday following U.S. President Donald Trump’s announcement of a total blockade on sanctioned Venezuelan oil tankers, sparking renewed geopolitical uncertainty.
Brent crude futures gained 87 cents, or 1.5%, to $59.79 a barrel, while U.S. West Texas Intermediate crude increased 85 cents, or 1.5%, to $56.12 a barrel. The rise comes after prices had settled near five-year lows amid progress in Russia-Ukraine peace talks, which could ease Western sanctions and free up oil supply, News.Az reports, citing Reuters.
Traders noted that the Venezuelan blockade news drove sentiment, though Venezuela accounts for only about 1% of global oil output, with most supplies going to China, the U.S., and Cuba. Analysts said that while short-term price spikes may be limited, prolonged disruptions could support heavy crude prices.
The blockade follows recent U.S. actions seizing sanctioned oil tankers, but uncertainties remain over how many vessels will be affected and how enforcement will be carried out. Some Venezuelan oil is still transported under exemptions granted to companies like Chevron, while other buyers remain concentrated in Asia and the Americas.
Analysts warn that ample global supply and demand concerns could temper gains, but any long-term disruption to Venezuelan shipments may boost prices for heavy crude grades.
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