Oil Prices Jump More Than 1% After Trump Announces Ban on Venezuelan Oil Tankers

Oil prices rose by more than 1% on Wednesday after former U.S. President Donald Trump announced what he described as a “complete ban” on all sanctioned oil tankers entering or leaving Venezuela, escalating geopolitical tensions and easing concerns about a growing global oil surplus.

Brent crude futures climbed 99 cents, or 1.68%, to $59.91 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 93 cents, or 1.68%, to $56.20 a barrel.

WTI Crude • 56.84 +1.57 +2.84%

Brent Crude • 60.57 +1.65 +2.80%

Murban Crude • 61.76 +1.86 +3.11%

Louisiana Light • 58.52 -0.64 -1.08%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 59.54 -1.26 -2.07%

Mars US • 775 days 70.36 -0.96 -1.35%

Natural Gas • 4.109 +0.223 +5.74%

The price increase followed Trump’s statement ordering a full prohibition on Venezuelan oil tankers subject to U.S. sanctions, a move that heightened uncertainty around global supply and added fresh pressure to already volatile energy markets.

Oil prices had settled near five-year lows in the previous session, amid indications of potential progress in peace talks between Russia and Ukraine. Such progress could eventually lead to a relaxation of Western sanctions on Moscow and bring additional oil supplies back to the market at a time when global demand remains fragile.

Trump said the ban was imposed a week after the detention of a sanctioned oil tanker off the Venezuelan coast, adding that he considers the administration of President Nicolás Maduro to be a “foreign terrorist organization.”

The Venezuelan government swiftly rejected the announcement, describing it as “outrageous” and vowing to continue oil exports.

Analysts warn that the U.S. ban poses clear risks to Venezuelan oil supplies, which account for around 1% of global production. Exports are concentrated among a limited number of buyers, most notably China, the United States, and Cuba, according to analyst Muyou Xu.

China remains the largest buyer of Venezuelan crude, accounting for roughly 4% of its total oil imports.