Oil prices climbed sharply on Wednesday after U.S. President Donald Trump ordered “a total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela, heightening geopolitical tensions amid ongoing concerns over weak global demand.
Brent crude futures rose 53 cents, or 0.9 percent, to USD 59.46 a barrel by 0105 GMT, while U.S. West Texas Intermediate (WTI) crude gained 55 cents, or 1 percent, to USD 55.82 a barrel.
In the previous session, oil prices had settled near five-year lows following progress in Russia–Ukraine peace talks, as a potential deal could lead to the easing of Western sanctions on Moscow, freeing up additional supply at a time when global demand remains fragile.
On Tuesday, President Trump ordered a blockade of all sanctioned oil tankers linked to Venezuela and stated that he now considers the country’s ruling authorities to be a foreign terrorist organization.
According to a U.S. oil trader, the move could affect between 0.4 and 0.5 million barrels of oil per day, potentially lifting prices by USD 1–2 per barrel.
Commenting on the likely market impact, Matias Togni, an analyst at oil market insights firm Next Barrel, said prompt physical premiums are expected to react more strongly than flat prices. He noted that alternatives such as Canadian and Colombian Castilla crude blends in the U.S. Gulf Coast may see increased demand, although the total supply loss would likely be less than 200,000 barrels per day from Chevron’s equity cargoes.
