Crude oil prices bounced back from near four-year lows Wednesday, after U.S. President Donald Trump said his country will block sanctioned tankers from entering and leaving Venezuela.
U.S. crude oil rose $1.03, or 1.86%, to $56.30 per barrel early Wednesday. Global benchmark Brent was trading at $59.96 U.S., up $1.04 or 1.77%.
The U.S. benchmark had fallen to the lowest levels since early 2021 on Tuesday, as traders see a potential peace agreement in Ukraine bringing Russian crude back to a well supplied market.
But Trump’s pressure campaign against Venezuelan President Nicolas Maduro has lifted prices from those lows. The president said he ordered a “total and complete” blockade of sanctioned oil tankers leaving and entering Venezuela.
Trump’s blockade comes after the U.S. seized a sanctioned oil tanker off Venezuela’s coast last week in a major escalation.
Venezuela is a founding member of the Organization of the Oil Exporting Countries (OPEC) and has the largest proven crude oil reserves in the world. It is exporting about 749,000 barrels per day this year, with at least half that oil going to China, according to data from Kpler.
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