The price of Brent crude exceeded $59 per barrel after President Trump’s decision to block oil tankers from Venezuela. This action may affect the markets in the coming days.
Oil prices rose by more than 1.5% on Wednesday, with the price of Brent oil moving towards the $60 per barrel (159 liters) mark. The markets reacted to the order of US President Donald Trump to block all sanctioned oil tankers heading to and from Venezuela. It was reported by the Reuters and Bloomberg agencies.
- Oil prices rose by more than 1.5% on Wednesday.
- Trump ordered the blockade of Venezuelan oil tankers.
- Brent crude reached $59.85, WTI rose to $56.18.
- The price of oil fell to a five-year low due to the negotiations.
The price of Brent North Sea oil mixture for delivery in February reached USD 59.85 (EUR 50.82) per barrel by 7:12 a.m. CET. Compared to the previous closing, this means an increase of 93 cents (1.58%). The price of American WTI light oil with the January contract reached USD 56.18/barrel. Compared to the previous close, this represents an increase of 91 cents (1.65%).
Oil prices thus recovered after falling to an almost five-year low on Tuesday (December 16). Behind their development on Tuesday is the progress in the negotiations on ending the war in Ukraine. The end of the war could mean easing of sanctions against Moscow and more significant deliveries of Russian oil to world markets.
Trump’s actions will raise the price
But Trump later announced that he had ordered a full blockade of all sanctioned oil tankers heading to and from Venezuelan ports. Trump’s decision could affect roughly 0.4 to 0.5 million barrels of oil a day, according to one of the US oil traders, which could lead to an increase in the prices of the commodity by a dollar to two per barrel.
The largest importer of oil from Venezuela is China. Venezuelan oil accounts for approximately 4% of the total volume of commodity imports into Asia’s largest economy. According to analysts, although the markets are currently sufficiently supplied with oil, if the embargo were to remain in force longer, oil prices will likely continue to rise.
