Oil prices rose on Wednesday morning as supply concerns heightened after US President Donald Trump ordered a “complete and total” blockade of sanctioned oil tankers moving in and out of Venezuela.
Brent, the benchmark for two thirds of the world's oil, was up 1.37 per cent at 11.02am UAE time to $59.73 a barrel, while West Texas Intermediate, the gauge that tracks US crude, was trading 1.45 per cent higher at $56.07 a barrel.
This came after WTI fell to its lowest levels since early 2021 this week on the prospect of more Russian oil entering global markets as peace talks to end the Ukraine war gain momentum.
Rising supply risk from Venezuela is offering only “marginal support” to crude, because of the country’s relatively small export volumes, said Vandana Hari, chief executive of Singapore-based Vanda Insights.
However, upbeat US rhetoric over a Ukraine peace deal, and expectations of a milder-than-normal Northern Hemisphere winter are putting downward pressure on oil prices on oversupply concerns, she added.
Mr Trump on Tuesday ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, putting oil flowing out of South American na
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