Oil Jumps After Trump Orders Blockade of Tankers Off Venezuela
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Oil rallied from the lowest level since 2021 after President Donald Trump ramped up pressure on Venezuela by ordering a blockade of sanctioned tankers off the South American nation.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Oil rallied from the lowest level since 2021 after President Donald Trump ramped up pressure on Venezuela by ordering a blockade of sanctioned tankers off the South American nation.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 climbed to near $56 a barrel after losing almost 6% over the previous four sessions on concerns over a swelling global glut. Trump said he was ordering a blockade of crude carriers going into and leaving Venezuela, according to a social media post on Tuesday.The move is a major escalation in hostilities between the two countries and follows the seizure of an oil tanker last week by US forces off Venezuela. Trump said he was also designating the regime of President Nicolas Maduro a foreign terrorist organization. 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.Venezuela’s oil production has increased since hitting a low in 2020, but is far from where it was decades ago. Tankers loaded almost 590,000 barrels a day for export last month, compared with global consumption of more than 100 million barrels a day. Most of the country’s crude goes to China.About 30% of the Venezuela’s oil shipments are at risk if the US continues to enforce sanctions, according to Rapidan Energy Group. A hoard of the country’s oil stored in tankers in Asia is expected to cushion Chinese buyers from any immediate hit to exports.Oil still remains on track for a yearly loss due to the glut, which is being driven by OPEC+ returning idled output at a rapid rate and other producers pumping more, as well as tepid demand. Signs of market weakness are emerging from the Middle East to the US, as investors brace for a surplus that the International Energy Agency predicts will be the biggest since the pandemic. Traders are also weighing the odds of a possible peace deal in Ukraine, which could pave the way for fewer restrictions on Russian crude exports.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.