Crude Prices Jump After US Blocks Venezuela

2025-12-17 11:05 By Anna Fedec 1 min. read

WTI crude oil futures rose more than 2% to above $56 per barrel on Wednesday, recovering from near a 5-year low in the previous session after President Trump ordered a “total and complete” blockade of sanctioned oil tankers linked to Venezuela.

The move follows last week’s seizure of blacklisted tankers off Venezuela’s coast and a buildup of US military presence in the region.

Adding to the upside momentum, it was reported that the US is preparing a fresh round of sanctions on Russia's energy sector to intensify pressure on Moscow to accept a peace agreement with Ukraine.

Still, broader downward pressures, including soft demand and possibility of Russia-Ukraine peace deal may restrain any rally.

Oil prices have struggled this year on ample supply, as OPEC+ steadily restores shut-in capacity and non-OPEC producers ramp up output.

Also, early signs of demand weakness are emerging across China, the Middle East, and the US.

Oil remains on track for its worst annual performance in 7 years.



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