Oil prices rose in trading on Thursday after the United States imposed a blockade on oil tankers bound for or departing from Venezuela, heightening market fears about disruptions to global supplies.
U.S. West Texas Intermediate crude futures for January delivery rose 0.98 percent to $56.50 per barrel, while global benchmark Brent crude futures for February delivery increased 0.84 percent to $60.18 per barrel.
Prices received additional support following a Bloomberg report stating that the United States is considering imposing new sanctions on Russia’s energy sector if Moscow does not agree to a peace deal with Ukraine. This increased concerns about supply disruptions, given Russia’s status as one of the world’s largest oil producers.
Analysts noted that any additional measures targeting Russian oil exports pose a greater threat to market balance compared to the announcement by the U.S. President on Tuesday imposing a blockade on sanctioned oil tankers entering and leaving Venezuela.
It was indicated that the U.S. blockade endangers approximately 600,000 barrels per day of Venezuelan oil exports, most of which are destined for China, while Venezuelan oil exports to the United States remain at a level of 160,000 barrels per day.
This development reflects the growing sensitivity in energy markets to geopolitical decisions, amid increasing concerns about shrinking supply at a time when global demand is experiencing sharp fluctuations.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, with its modern government established by the Constitution in 1789. Its history encompasses westward expansion, the Civil War, industrialization, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse cultural heritage, democratic ideals, and significant influence on global politics, economics, and popular culture.
Venezuela
Venezuela is a South American country with a history of indigenous inhabitation before Spanish colonization in the 16th century, leading to its independence in 1811 under Simón Bolívar. It is known for its significant oil reserves, the Angel Falls (the world’s highest waterfall), and diverse landscapes ranging from the Andes Mountains to the Amazon Basin rainforest.
West Texas Intermediate
West Texas Intermediate (WTI) is a grade of crude oil used as a major global pricing benchmark. It originates from U.S. oil fields, primarily in Texas, and its pricing point is based at the pipeline hub in Cushing, Oklahoma. The term itself refers not to a physical cultural site but to a key commodity that has played a significant role in the economic history of the American oil industry.
Brent
Brent is a diverse borough in northwest London, historically known for its industrial past and the iconic Wembley Stadium. It is also home to the Neasden Temple, a traditional Hindu mandir that opened in 1995 and serves as a major cultural and religious site.
Bloomberg
Bloomberg is a global financial data, software, and media company founded in 1981 by Michael Bloomberg. It is best known for its Bloomberg Terminal, a computer system that provides real-time financial market data and trading capabilities to professionals. The company’s name is also associated with Bloomberg News, a major international news agency.
Russia
Russia is the world’s largest country by area, spanning Eastern Europe and Northern Asia. Its history is marked by the rule of the Tsars, the rise and fall of the Soviet Union in the 20th century, and its establishment as the modern Russian Federation in 1991. It is renowned for its vast landscapes, rich literary and artistic traditions, and globally influential cities like Moscow and Saint Petersburg.
Ukraine
Ukraine is a country in Eastern Europe with a rich history dating back to the medieval state of Kyivan Rus. It has experienced periods of independence as well as rule by various empires, before re-establishing its sovereignty with the dissolution of the Soviet Union in 1991. The nation is known for its distinct cultural heritage, including traditions in music, art, and Orthodox Christianity.
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural achievements.
