- Oil prices rose from 2021 lows after Trump's blockade of Venezuelan oil tankers
- West Texas Intermediate crude climbed above $56 a barrel after recent declines
- Trump designated Maduro's regime as a foreign terrorist organization
Oil rose from the lowest level since 2021 after President Donald Trump ramped up pressure on Venezuela with a blockade of tankers, while signs of a swelling global glut continue to hang over the market.
West Texas Intermediate climbed above $56 a barrel after tumbling almost 6% over the previous four sessions. Brent settled just below $59. Trump said he was ordering a blockade of sanctioned oil ships going into and leaving the South American nation, according to a social media post on Tuesday.
The move represents an escalation 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.
Meanwhile, signs of market weakness are emerging from the Middle East to the US, as investors brace for a glut that the International Energy Agency predicts will be the biggest since the pandemic.
Oversupply is being driven by OPEC+ returning idled output at a rapid rate and other producers pumping more, putting oil on track for a yearly loss. 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.
Prices
WTI for January delivery gained 1.4% to $56.06 a barrel at 8:16 a.m. in Singapore.
Brent for February settlement closed 2.7% lower at $58.92 a barrel on Tuesday.
