Oil prices are up 2% on Dec. 22 as the U.S. ramps up efforts to block crude exports from Venezuela.
U.S. President Donald Trump has ordered a total blockade of Venezuelan crude oil exports after accusing the country of stealing America’s oil assets.
The American military seized a Panamanian-flagged vessel over the weekend carrying 1.8 million barrels of crude oil.
Venezuela, which is led by controversial leader Nicolas Maduro, produces around 600,000 barrels of oil each day, most of which is sold to buyers in China.
China’s government in Beijing has said the seizures “grossly violate international law.”
Reports also say the Trump administration is preparing tougher sanctions on Russia’s crude oil exports should peace talks with Ukraine fail to produce a ceasefire in the ongoing war.
The result is that Brent crude oil, the international standard, is up 2.23% and trading at $61.82 U.S. a barrel.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is up 2.30% and trading at $57.82 U.S. per barrel.
Despite the price leap, the international crude market remains awash with excess oil amid record production from the U.S. and declining demand from China, the world’s largest importer.
The International Energy Agency (IEA) forecasts a daily surplus of around 3.84 million barrels of crude oil in 2026.
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