Oil prices continued to move higher during Asian trading on Thursday after U.S. President Donald Trump ordered a blockade of sanctioned oil tankers traveling to and from Venezuela, raising fresh concerns over global crude supply.
Additional support came from reports that Washington is considering tougher restrictions on Russia’s energy sector, further intensifying fears of supply disruptions from two major oil-producing nations.
By 21:58 ET (02:58 GMT), Brent crude futures for February delivery climbed 0.7% to $60.08 per barrel. U.S. West Texas Intermediate crude futures rose 0.8% to $56.39 per barrel.
Venezuela blockade and Russia sanctions lift supply concerns
Earlier this week, President Trump announced a blockade targeting tankers transporting Venezuelan crude that are already subject to U.S. sanctions. The move increases pressure on President Nicolás Maduro’s government and heightens the risk of further export disruptions from the OPEC member.
Venezuela’s oil shipments have already been heavily restricted by years of sanctions, and stricter enforcement of the blockade could tighten global supply even further.
Analysts at ING noted that the market impact will largely depend on how effectively the blockade is enforced and how long it remains in place. Both factors will be critical in determining the scale of disruption to oil flows.
Adding to the bullish sentiment, media reports indicated that the U.S. administration is preparing additional sanctions on Russia’s energy sector if progress toward a peace agreement in Ukraine fails to materialize.
Potential measures could target Russian oil production, shipping routes and export infrastructure, threatening output from one of the world’s largest crude exporters. According to ING, current market conditions give Washington room to pursue a more aggressive sanctions strategy, particularly with Brent prices hovering near $60 per barrel.
U.S. crude inventories fall, fuel stocks rise
On the data side, figures from the U.S. Energy Information Administration showed that domestic crude oil inventories declined by 1.27 million barrels in the week ending December 12. The draw was smaller than market expectations for a 2.4 million barrel reduction.
The report also highlighted rising refined fuel supplies. Gasoline inventories jumped by 4.81 million barrels, while distillate fuel stocks increased by 1.71 million barrels, pointing to softer demand for fuel products despite the drop in crude stockpiles.
