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. 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.
