Khaberni - Khaberni - Oil prices rose in Asian trading on Thursday after U.S. President Donald Trump announced a blockade on the entry and exit of oil tankers to and from Venezuela, thereby continuing to disrupt most of the country's exports.
The price of West Texas Intermediate (WTI) crude oil in the U.S. increased by 98 cents or 1.7% to $56.89 per barrel. It initially rose by more than a full dollar. Brent crude price rose 92 cents or 1.54% to $60.60 per barrel.
Trump issued an order on Tuesday imposing a blockade on the entry and exit of all sanctioned oil tankers to and from Venezuela, and described the administration of President Nicolas Maduro as a foreign terrorist organization. It is not yet clear how this decision will be implemented.
Sources and customs data showed that most Venezuelan exports remained stopped on Wednesday due to the blockade, despite the resumption by the Venezuelan state oil company of loading crude oil and fuel shipments after a halt following a cyber-attack. Chevron ships continued to sail to the United States under a previous U.S. government license.
Tony Sycamore, a market analyst at (IG), noted in a memo: "Although the details of implementation are still unclear, the unexpected escalation of U.S. pressure on the Maduro regime, raised concerns about disruptions to supplies."
Last week, the United States used its Coast Guard to detain the giant oil tanker (Skipper) near Venezuela, in the first American detention operation of an oil shipment from Venezuela.
News of the blockade pushed oil prices up by more than 1% during the session, on Wednesday, recovering from their lowest levels in 5 years amid progress related to Ukrainian peace talks, which could pave the way for easing sanctions imposed on Russia.
Venezuelan crude oil accounts for about 1% of global supplies, and most of it is exported to China. However, market sources indicate that weak demand and the abundance of crude oil available on floating storage units in Asia are reducing the impact of recent developments on the world's largest oil importer.
