Oil Advances as US Pursues Third Tanker in Venezuela Blockade

Core Viewpoint - Oil prices have risen due to intensified US actions against Venezuela, including the boarding of tankers and increased pressure on the Maduro government [1][3]. Group 1: Oil Price Movements - Brent crude climbed to approximately $61 per barrel, while West Texas Intermediate was near $57, following two weeks of declines [2]. - The geopolitical situation, particularly actions against Venezuela and tensions involving Russia, has provided a support level for oil prices, despite a 20% drop in prices this year [5]. Group 2: US Actions and Venezuela - The US Coast Guard boarded the Centuries tanker carrying about 2 million barrels of Venezuelan crude and is pursuing another tanker, Bella 1, heading to Venezuela [2]. - The US has designated the Maduro regime as a foreign terrorist organization, aiming to cut off its key revenue streams from oil exports [3]. Group 3: Global Oil Supply and Demand - Venezuela, despite having the world's largest crude reserves, now accounts for less than 1% of global oil demand, with most exports going to China [3]. - The oversupply in the oil market has been exacerbated by OPEC+ restoring production faster than expected, alongside increased output from non-OPEC producers and weak demand [5]. Group 4: Future Outlook - Analysts maintain a slightly optimistic view on crude prices for the remainder of the year due to supportive geopolitical developments, although a drop into the $50s is anticipated next year [7].