U.S. crude futures rose more than 1% Wednesday as Trump ordered “a total and complete” block of all sanctioned oil tankers entering and leaving Venezuela.
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Crude oil prices bounced back from near four-year lows Wednesday, after President Donald Trump said the U.S. will block sanctioned tankers from entering and leaving Venezuela.
U.S. crude oil rose 67 cents, or 1.21%, to close at $55.94 per barrel. Global benchmark Brent settled at $59.68, up 76 cents or 1.29%.
The U.S. benchmark had fallen to the lowest levels since early 2021 on Tuesday, as traders see a potential peace agreement in Ukraine bringing Russian crude back to a well supplied market.
Oil, 5 years
But Trump’s pressure campaign against Venezuelan President Nicolas Maduro has lifted prices from those lows. The president said he ordered a “total and complete” blockade of sanctioned oil tankers leaving and entering Venezuela.
Trump’s blockade comes after the U.S. seized a sanctioned oil tanker off Venezuela’s coast last week in a major escalation.
Venezuela is a founding member of OPEC and has the largest proven crude oil reserves in the world. Â It is exporting about 749,000 barrels per day this year, with at least half that oil going to China, according to data from Kpler.
