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.
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.
Today, the Federal Bureau of Investigation, Homeland Security Investigations, and the United States Coast Guard, with support from the Department of War, executed a seizure warrant for a crude oil tanker used to transport sanctioned oil from Venezuela and Iran. For multiple… pic.twitter.com/dNr0oAGl5x
December 10, 2025Meanwhile, 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.
Prices
WTI for January delivery rose 0.6% to $58.80 a barrel at 8:149 a.m. in Singapore.
Brent for February settlement closed 0.4% higher at $62.21 a barrel on Wednesday.
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