Oil prices rise as Trump orders tanker blockade on Venezuela
Blockade lifts crude prices despite global supply concerns
Crude oil prices climbed about 1% in Wednesday trading after Donald Trump ordered a blockade of oil tankers entering and leaving Venezuela, tightening supply concerns tied to the sanctioned producer. The move helped lift oil prices even as global benchmarks remained below $60 per barrel.
The blockade reportedly eased worries about a growing global crude oil glut, though Brent crude — the global benchmark — remained under the $60 threshold. The action followed a week of volatility in oil markets driven by geopolitics and shifting supply expectations.
U.S. targets Venezuelan oil shipments
According to Reuters, Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, stating he regarded President Nicolas Maduro’s administration as a foreign terrorist organization.
The Venezuelan government responded with a statement rejecting what it described as Trump’s “grotesque threat.” The blockade announcement came one week after the United States seized a sanctioned oil tanker off Venezuela’s coast, signaling a tougher enforcement posture toward the South American nation’s oil exports.
Crude benchmarks move higher
Oil futures reacted positively to the news. Brent crude futures settled at $59.68 per barrel, rising 76 cents, or 1.3%. U.S. West Texas Intermediate (WTI) crude finished at $55.94 per barrel, up 67 cents, or 1.2%, on the New York Mercantile Exchange.
Market observers said the blockade added fresh uncertainty to global oil flows, particularly as Venezuela remains a key supplier to select international buyers despite sanctions.
Natural gas rebounds sharply
After several days of losses, natural gas prices rebounded strongly on Wednesday. Futures settled at $4.088 MMBtu, posting a gain of $0.202, or 5.20%, marking one of the strongest daily advances in recent weeks.
Oklahoma energy stocks turn positive
Wednesday also proved favorable for most Oklahoma energy stocks, which largely finished in positive territory. Devon Energy surged more than 5%, while Ovintiv Inc. gained 4%.
Not all stocks participated in the rally. Stardust Power dropped 5%, and Empire Petroleum fell about 4% on the day.