Geopolitical Impact on Oil Prices - Oil prices increased by more than 1% following President Trump's order for a blockade of all sanctioned oil tankers entering and leaving Venezuela, raising geopolitical tensions [1][8] - The blockade could potentially affect 0.4-0.5 million barrels of oil per day, leading to a price increase of $1-2 per barrel according to a US oil trader [4] Market Reactions and Sentiment - Brent crude futures rose by 79 cents (1.3%) to $59.71 per barrel, while US West Texas Intermediate crude increased by 77 cents (1.4%) to $56.04 per barrel [1] - A recovery in futures buying after prices dipped below $60 per barrel was also a significant factor in the price increase [5] Supply Dynamics and Future Outlook - Despite the blockade, the overall export volumes from Venezuela are relatively small in the global supply context, and the market remains focused on the ongoing Russia-Ukraine discussions [5] - Analysts suggest that while the oil market is currently well supplied, prolonged disruptions could support higher prices for heavy crude grades in the long term [11][12]
Oil rises over 1% as Trump's Venezuela blockade stokes uncertainty
New York Post·2025-12-17 08:22