"Trump’s Global Siege" In Venezuela, oil increases by 1%

YNP:

Oil prices rose more than 1% today, Wednesday, following the US president’s decision to impose a “complete and comprehensive” blockade on all sanctioned oil tankers entering and leaving Venezuela.

Brent crude futures rose 70 cents, or 1.2 percent, to $59.62 a barrel, while U.S. West Texas Intermediate crude rose 73 cents, or 1.3 percent, to $56.

Both benchmarks closed near five-year lows yesterday in light of progress in Russian-Ukrainian peace talks, where a potential deal is expected to result in an easing of Western sanctions imposed on Moscow, allowing an increase in supply even in light of weak global demand.

Yesterday, Tuesday, Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, adding that he now considers Venezuela’s leaders a foreign terrorist organization.

A U.S. trader said the measure could affect between 0.4 million and 0.5 million barrels of oil per day, raising prices by one to two dollars per barrel, according to Reuters.