Crude Oil Prices Jump After Trump Orders Blockade Of Venezuelan Oil Tankers

Crude Oil prices climbed in early Asian trade on Wednesday after former US President Donald Trump announced a blockade on oil tankers linked to Venezuela. The move lifted prices after crude had fallen to a 5-year low in the previous session.

Brent crude futures for February rose to around $59.38 per barrel, while US West Texas Intermediate (WTI) crude traded near $55.75 per barrel. Earlier in the session, WTI had jumped as much as 1.7%.

Trump Announces Blockade On Venezuelan Oil

In a social media post, Trump said he had ordered a “total and complete blockade” of all sanctioned oil tankers travelling to and from Venezuela. He also described the government of President Nicolas Maduro as a “foreign terrorist organisation”.

This decision is part of Trump’s tougher stance against Venezuela, which he has accused of allowing illegal drugs and criminals to enter the United States. Recently, US forces also seized an oil tanker off Venezuela’s coast, and Trump has hinted at further action against the country.

Impact On Venezuelan Oil Supply

Venezuela exported around 600,000 barrels of oil per day in November, most of which was shipped to China. 

Supply Glut Concerns Still Weigh On Market

Despite the price rebound, oil markets remain under pressure due to fears of a global supply surplus in 2026. 

Hopes of progress in peace talks between Russia and Ukraine also weighed on prices earlier, as easing sanctions on Russia could allow more oil to return to global markets.

Us Crude Inventory Data Offers Support

Weekly data from the American Petroleum Institute showed that US crude oil inventories fell by 9.3 million barrels last week, much more than expected. This helped support prices in the short term.

However, gasoline inventories rose by 4.8 million barrels and distillate fuel stocks increased by 2.5 million barrels, pointing to softer demand for fuels.

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Conclusion

Oil prices have bounced back on fears of supply disruption after Trump’s Venezuela tanker blockade. However, longer-term concerns about oversupply and weak demand could continue to limit any sustained rise in crude prices.

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