Oil Advances as US Pursues Third Tanker in Venezuela Blockade
Oil rose as President Donald Trump intensified a blockade on Venezuela, with US forces boarding one tanker and pursuing another within weeks of first capturing a vessel.
Brent crude climbed towards $62 a barrel, after two weekly declines. The US Coast Guard boarded the Centuries tanker in the Caribbean on Saturday, which was carrying about 2 million barrels of Venezuelan crude. It was also in pursuit of the Bella 1, which was en route to the Latin American nation.
Washington has been stepping up pressure on Nicolás Maduro’s government, with Trump aiming to choke off its key revenue stream. The US has designated the regime as a foreign terrorist organization, accusing it of involvement in drug trafficking. Venezuela still has the world’s largest crude reserves, but its exports, most of which go to China, now account for less than 1% of global demand.
There were also heightened risks to supplies from another member of the OPEC+ producer group, after Ukraine hit an oil tanker from Russia’s shadow fleet in the Mediterranean Sea with drones for the first time. That followed strikes on Lukoil PJSC facilities in the Caspian Sea.
The geopolitical situation has helped put a floor under oil prices, which have dropped by about a fifth this year. The declines have been driven by an oversupply as both OPEC+ and the group’s competitors raised production will demand growth slowed.
Brent for February settlement rose 2.1% to $61.77 a barrel as of 1:22 p.m. in London.
WTI for February delivery advanced 2.2% to $57.76 a barrel.
Source : Bloomberg.com
