Oil costs rose more than 1% on Wednesday after President Donald Trump ordered “a total and complete” blockade of all sanctioned oil tankers getting into and leaving Venezuela, raising recent geopolitical tensions at a time of issues over demand.
Brent crude futures were up 79 cents, or 1.3%, at $59.71 a barrel at 0500 GMT, while US West Texas Intermediate crude rose 77 cents, or 1.4%, to $56.04 a barrel.
Oil costs settled close to five-year lows in the earlier session on progress in Russia-Ukraine peace talks, as a deal may see Western sanctions on Moscow eased, liberating up provide even as the market grapples with fragile world demand.
A drone view of a pump jack and drilling rig south of Midland, Texas. REUTERS
Trump on Tuesday ordered a blockade of all sanctioned oil tankers getting into and leaving Venezuela, including that he now regarded the nation’s rulers as a international terrorist group.
The transfer could probably impression 0.4-0.5 million barrels of oil per day, lifting costs by $1-2 per barrel, according to a US oil trader.
However, crude oil merchants in Asia said a restoration in futures shopping for, after costs dipped below $60 per barrel the earlier day, was also a key driver of the uptick in oil on Wednesday.
“The price is sentiment-driven by the Venezuelan news for today, but overall, export volumes from Venezuela are relatively small in the global supply share. With all eyes on the Russia-Ukraine discussions, the market is still under downside risk,” a trader said.
Another trader said the price uptick is unlikely to last, including that “it might be good opportunity for some to build short positions.”
Oil costs rose more than 1% on Wednesday after President Donald Trump ordered “a total and complete” blockade of all sanctioned oil tankers getting into and leaving Venezuela. via REUTERS
Trump’s newest feedback came a week after the US seized a sanctioned oil tanker off the coast of Venezuela.
It is unclear how many tankers would be affected and how the US will impose the blockade against the sanctioned vessels, and whether Trump will flip to the Coast Guard to interdict vessels like he did last week.
In current months, the US has moved warships into the area.
While many vessels selecting up oil in Venezuela are under sanctions, others transporting the nation’s oil and crude from Iran and Russia have not been sanctioned.
US forces fast-rope down onto an oil tanker off the coast of Venezuela on Dec. 10, 2025. via REUTERS
President Nicolas Maduro addresses supporters during a rally marking the anniversary of the Battle of Santa Isabel, which took place during Venezuela’s Nineteenth-century Federal War, in Caracas, Venezuela, Wednesday, Dec. 10, 2025. AP
Tankers chartered by Chevron (CVX.N) are also carrying Venezuelan crude to the US under an authorization beforehand granted by Washington.
China is the largest purchaser of Venezuelan crude, which accounts for roughly 4% of its imports.
Analysts say the oil market is properly equipped for now, but if the embargo stays in place for an prolonged period, crude costs are doubtless to rise further.
“In the short term, an extreme price rally is unlikely unless there are any retaliatory actions that impact the wider Americas region’s oil and gas systems, while global supply glut expectations remain in the forefront of trading focus,” said Emril Jamil, a senior oil analyst at LSEG.
“But in the longer term, any prolonged disruption can be supportive of prices of heavy crude grades.”