Oil Rises With Venezuela Blockade and Russian Sanctions in Focus
(Bloomberg) -- Oil climbed for a second day as geopolitical risks in Venezuela and Russia outweighed a still-bearish global supply outlook.
Global benchmark Brent initially rose toward $61, then pared some of its intraday gain in a choppy session after US President Donald Trump refrained from mentioning developments in Venezuela during an address from the White House. US marker West Texas Intermediate, meanwhile, was above $56.
Washington imposed a blockade on sanctioned tankers from Venezuela this week, with Trump accusing Caracas of taking away US “energy rights.” That move — as well as the earlier seizure of a vessel off the country’s coast — have combined to raise concerns about interruptions to oil shipments. Asian hours.
Oil is still on track for a yearly loss of about a fifth on concerns that global supply will eclipse demand, with WTI hitting the lowest since 2021 earlier this week before the spike in tensions lent some support. Market metrics from the Middle East to the US have been flashing signs of underlying weakness.
“This is not the time to short the market, “said Mukesh Sahdev, chief executive officer of XAnalysts Pty, referring to making bets on losses.
Activity has thinned in the run-up to next week’s Christmas break, with the aggregate volume of Brent contracts traded on Thursday below the daily average. That could amplify price moves, lifting volatility.
The US is also preparing a fresh round of sanctions on Russia’s energy sector should President Vladimir Putin reject a peace agreement with Ukraine. Increased pressure on the nation’s shadow fleet of tankers and traders who facilitate exports are among options being considered.
In Venezuela, oil-storage facilities and tankers at its terminals are quickly filling up, according to people familiar with the situation. If they reach maximum capacity, state-owned Petróleos de Venezuela SA — which produces close to 1 million barrels a day — could be forced to shut-in wells.
On state television, President Nicolás Maduro said he had talked with UN Secretary-General Antonio Guterres. “The US seeks a regime change to impose a puppet government,” he said. “That’s not going to happen, never.”
Chinese Foreign Minister Wang Yi expressed support for Venezuela on Wednesday, criticizing one-sided coercion hours after Trump ordered the blockade. The Asian nation’s top diplomat told his Venezuelan counterpart, Yvan Gil, Beijing opposes “unilateral bullying,” according to a statement.
©2025 Bloomberg L.P.
