Oil Prices Rose After Trump's Blockade Of Tankers From Venezuela

Analysts made a prediction about further dynamics.

On Wednesday, December 17, oil prices rose after U.S. President Donald Trump announced a blockade for all sub-sanctioned tankers entering and leaving Venezuelan ports.

According to Reuters.

Brent crude futures reportedly rose 79 cents, or 1.3 percent, to $59.71 a barrel, while U.S. West Texas Intermediate crude rose 77 cents, or 1.4 percent, to $56.04 a barrel.

A U.S. oil trader said the Venezuelan blockade could potentially affect 0.4-0.5 million barrels of oil a day and push prices up $1 to $2 a barrel.

Crude oil traders in Asia said renewed futures buying after prices fell below $60 a barrel the previous day was also a key factor in Wednesday's oil price gains.

"The price depends on sentiment from today's news from Venezuela, but overall Venezuelan export volumes are relatively small in the global supply distribution. With all eyes fixed on the negotiations between Russia and Ukraine, the market is still at risk of a lower price," a trader said.

It is noted that China is the largest buyer of Venezuelan crude, accounting for about 4% of its imports.

According to analysts, the oil market is well supplied, but if the embargo remains in place for an extended period, crude prices are likely to rise further.

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