Oil prices rose nearly 2 percent on Wednesday after falling to almost five-year lows in the previous session on supply glut concerns and increased optimism surrounding a potential Russia-Ukraine peace deal.
Benchmark Brent crude futures jumped 2.3 percent to $60.27 a barrel while WTI crude futures were up 2 percent at $60.09.
Geopolitical risk premium drove prices higher after U.S. President Donald Trump ordered a blockade of sanctioned oil tankers in Venezuela.
In a Truth Social post, Trump declared the government of President Nicolas Maduro a foreign terrorist organization and said he was ordering a "total and complete blockade of all sanctioned oil tankers" going into and leaving Venezuela.
"Venezuela is completely surrounded by the largest Armada ever assembled in the History of South America. It will only get bigger, and the shock to them will be like nothing they have ever seen before — Until such time as they return to the United States of America all of the Oil, Land, and other Assets that they previously stole from us," Trump wrote in a dramatic escalation in his months-long pressure campaign against Caracas.
The blockade, coming a week after U.S. forces seized the very large crude carrier Skipper off Venezuela's coast, raised fresh geopolitical tensions at a time of concerns over demand.
Venezuela exports account for around 1 percent of total world oil consumption, and most volumes head to China, directly or indirectly.
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Market Analysis
December 12, 2025 15:14 ET Central bank decisions dominated the economic news flow this week led by the Federal Reserve. Trade data from the U.S. also gained attention. The Canadian and Swiss central banks also announced their interest rate decisions. Inflation data from China was in focus as the country released the latest consumer price and producer price data.