Oil Extends Gain as US Seizure of Venezuelan Tanker Adds to Risk
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Oil extended gains after the US seized a sanctioned tanker off Venezuela, deterring more shipments from the South American producer and raising the risk of a conflict.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Oil extended gains after the US seized a sanctioned tanker off Venezuela, deterring more shipments from the South American producer and raising the risk of a conflict.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.West Texas Intermediate rose to near $59 a barrel after reversing an earlier decline to climb 0.4% on Wednesday following the seizure. Brent crude closed above $62. US forces intercepted and boarded the very large crude carrier in a serious escalation of tensions with Caracas, with the Venezuelan government calling the move an “act of piracy.”Venezuela holds the world’s largest oil reserves and exported around 586,000 barrels a day last month. Most of that went to China, although some of Chevron Corp.’s production from the OPEC member goes to the US. The company said its operations are continuing as normal.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Meanwhile, Ukraine attacked a shadow-fleet tanker linked to Russia’s oil trade, even as the US pushes for a ceasefire between the two sides. The latest incident means that since the end of last month there have been at least five attacks on vessels that had ties to Russia.The increased geopolitical tensions come against a bearish backdrop for crude, as increased production from OPEC+ and the Americas is set to overwhelm tepid demand growth and lead to a glut. Monthly reports from the Organization of the Petroleum Exporting Countries and the International Energy Agency are due later Thursday, potentially offering more insight on the supply-demand situation.“The US seizing a sanctioned vessel off Venezuela, and Ukraine attacking another Russian shadow-fleet vessel in the Black Sea should be adding more to the near-term sanction and war-risk premium,” said Robert Rennie, head of commodity and carbon research at Westpac Banking Corp. “The developing super-glut will weigh on prices in 2026” and Brent should hold in the current range of $60 to $65 a barrel for now, he said. Elsewhere, US crude inventories declined by 1.8 million barrels last week, according to government data. Stockpiles at Cushing, Oklahoma, increased following four weeks of declines, but levels at the delivery point for WTI are still the lowest since 2007 for this time of the year.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2025 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.