Oil rebounds after Trump orders Venezuela tanker blockade
U.S. crude oil futures rose more than 1 percent on Wednesday as Trump ordered a “total and complete” blockage of all sanctioned oil tankers entering and exiting Venezuela.
Chinese Face | E+ | Getty Images
Crude oil prices rebounded from nearly four-year lows on Wednesday after President Donald Trump said the United States would block sanctioned tankers from entering and exiting Venezuela.
US crude oil It closed at $55.94 a barrel, up 67 cents, or 1.21%. Global benchmark Brent It settled at $59.68, up 76 cents, or 1.29%.
The US benchmark fell to the lowest levels since early 2021 on Tuesday as traders saw a possible peace deal in Ukraine that would return Russian crude to a well-supplied market.
Petroleum, 5 years
However, Trump’s pressure campaign against Venezuelan President Nicolas Maduro pushed prices up from these low levels. The president said he had ordered a “total and complete” blockade of sanctioned oil tankers leaving and entering Venezuela.
Trump’s blockade follows the US’s high-profile seizure of a sanctioned oil tanker off the coast of Venezuela last week.
Venezuela is a founding member of OPEC and has the largest proven crude oil reserves in the world. According to data from Kpler, approximately 749,000 barrels of oil are exported per day this year, and at least half of this oil is going to China.
