Oil prices climbed on Monday after officials confirmed that the United States had intercepted an oil tanker in international waters off the coast of Venezuela, injecting new uncertainty into global crude supply.
Brent crude futures rose 57 cents, or 0.9%, to $61.04 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 55 cents, or 1.0%, to $57.07 in early European trading.
Analysts said the move reflected growing awareness that the administration of Donald Trump is taking a tougher stance on Venezuelan oil exports. June Goh, senior oil market analyst at Sparta Commodities, said geopolitical developments are providing support to prices despite otherwise bearish fundamentals.
She added that the situation in Venezuela, combined with ongoing tensions between Russia and Ukraine, is helping underpin crude prices even as oversupply concerns persist.
According to officials cited by Reuters, the U.S. Coast Guard is pursuing an oil tanker in international waters near Venezuela. If successful, it would mark the second such operation over the weekend and the third in less than two weeks. The White House did not immediately respond to requests for comment.
Market sentiment has also been shaped by a series of geopolitical events, beginning with President Trump’s announcement of a “total and complete” blockade of sanctioned Venezuelan oil tankers. This was followed by reports of a Ukrainian drone strike on a Russian shadow fleet vessel in the Mediterranean Sea, further heightening supply risks.
Analysts noted that hopes for a near-term breakthrough in U.S.-brokered peace talks between Russia and Ukraine have faded. These concerns are helping offset fears of oversupply, particularly after a failed downside break in oil prices last week that caught many traders off guard.
Both Brent and WTI crude fell around 1% last week, following a steeper 4% decline in the prior week.
Diplomatic efforts continue, with U.S. special envoy Steve Witkoff saying recent talks in Florida involving U.S., European, and Ukrainian officials were aimed at aligning positions on ending the war in Ukraine. However, a senior foreign policy adviser to Russian President Vladimir Putin said changes proposed by European and Ukrainian negotiators had not improved prospects for peace.
