Oil prices rise after the US seizes Venezuelan tankers – Reuters
Photo: Oil prices rise after the US seizes Venezuelan tankers (Getty Images)
Oil prices rose on Monday, December 22, after the United States intercepted an oil tanker off the coast of Venezuela in international waters, Reuters reported.
Oil price gains
Brent crude futures rose by 44 cents, or 0.73%, to $60.91 per barrel, while US West Texas Intermediate (WTI) crude gained 40 cents, or 0.71%, to $56.92 per barrel.
At the same time, Brent and WTI prices fell by around 1% last week after dropping nearly 4% the week before.
Geopolitical factors
According to the agency, the US Coast Guard is also pursuing another oil tanker in international waters near Venezuela. If successful, this would mark the second such operation over the weekend and the third in less than two weeks.
Analysts say the rebound in oil prices is linked to rising geopolitical tensions, particularly a statement by US President Donald Trump announcing a “total and complete” blockade of sanctioned Venezuelan oil tankers.
Additional support for the market came from reports of a Ukrainian drone strike on a Russian vessel belonging to the so-called shadow fleet in the Mediterranean Sea.
As one analyst noted, the market is also gradually losing hope for a rapid, long-term peace agreement between Russia and Ukraine brokered by the United States.
“These developments help offset persistent concerns about oversupply, and when combined with last week’s false downside breakout that caught the market poorly positioned, the balance of risks is very close to shifting back toward higher crude oil prices,” the publication quoted the analyst as saying.
Background
The United States has repeatedly conducted operations to detain oil tankers entering or leaving Venezuelan ports.
In particular, on December 10, US forces intercepted and took control of a sanctioned oil tanker near the coast of Venezuela.
US President Donald Trump confirmed the operation and announced further steps against Venezuela in the near future. After that, another vessel was detained in international waters.
US Defense Secretary Pete Hegseth said the United States would continue seizing tankers leaving Venezuela until the regime of President Nicolás Maduro returns “all stolen American assets.”
On Sunday, December 21, the United States seized a third oil tanker off the coast of Venezuela.
