Oil prices climbed more than 2% on Wednesday after U.S. President Donald Trump ordered a full blockade of sanctioned oil tankers operating in and out of Venezuela, triggering fresh concerns over supply disruptions.
Brent crude futures rose $1.41, or 2.4%, to $60.33 a barrel by 10:18 GMT. U.S. West Texas Intermediate (WTI) gained $1.42, or 2.6%, to $56.69 a barrel.
The rally followed a sharp sell-off in the previous session, when prices fell to five-year lows amid optimism over Russia–Ukraine peace talks, which could lead to looser Western sanctions on Moscow and increased oil supply.
Trump announced the blockade on Tuesday and described Venezuela’s leadership as a foreign terrorist organisation, escalating Washington’s confrontation with Caracas.
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The decision followed the U.S. seizure of a sanctioned oil tanker off Venezuela’s coast last week.
“Markets already priced in Russian supply risks,” said Warren Patterson, oil analyst at ING. “Venezuelan supply now presents a more immediate threat.”
Traders remain uncertain about how the U.S. will enforce the blockade. Analysts say Washington may deploy the U.S. Coast Guard or naval forces, which have increased their presence in the region in recent months.
Limited supply, concentrated buyers
Venezuela produces about 1% of global oil output, but its exports flow to a small group of buyers.
“Most Venezuelan crude goes to Chinese teapot refiners, the United States, and Cuba,” said Muyu Xu, senior oil analyst at Kpler.
China leads purchases, with Venezuelan crude accounting for around 4% of its total oil imports.
Despite the sanctions, Chevron continues to ship Venezuelan crude to the U.S. under a special licence issued by Washington. Some tankers moving Venezuelan oil linked to Iran and Russia also remain unsanctioned.
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Oil prices also gained support from signs of tightening U.S. supply. U.S. crude inventories fell by 9.3 million barrels last week, according to figures from the American Petroleum Institute, far exceeding the 1.1 million-barrel draw analysts had expected.
Traders now await official inventory data from the U.S. Energy Information Administration, due later on Wednesday.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
