Oil prices climbed sharply in early trade yesterday following the US interception of a crude oil tanker near Venezuela in international waters, highlighting ongoing geopolitical tensions affecting global energy markets. Brent crude futures rose 44 cents, or 0.73%, to $60.91 per barrel, while US West Texas Intermediate (WTI) crude increased 40 cents, or 0.71%, to $56.92.
The US Coast Guard confirmed it is pursuing another oil tanker near Venezuela, marking the second interception attempt over the weekend and the third in less than two weeks. Officials noted that such operations signal increased US scrutiny over Venezuelan oil exports amid sanctions.
Analysts say geopolitical developments have been the main driver behind the rebound in oil prices. IG analyst Tony Sycamore pointed to US President Donald Trump’s “total and complete” blockade on sanctioned Venezuelan oil tankers, along with reports of a Ukrainian drone strike on a Russian shadow fleet vessel in the Mediterranean Sea. These events have intensified uncertainty in the oil market.
“The market is losing hope that the US-brokered Russia-Ukraine peace talks will reach a lasting agreement any time soon,” Sycamore said, reflecting growing investor concern over potential supply disruptions and geopolitical instability. Last week, both Brent and WTI crude had dropped about 1%, following a 4% decline the previous week.
Meanwhile, US Special Envoy Steve Witkoff reported that recent talks in Florida involving US, European, and Ukrainian officials, as well as separate discussions with Russian negotiators, have focused on aligning positions to end the war in Ukraine. While described as productive, market participants remain cautious about any near-term breakthrough.
source: This day