Oil prices rebounded more than 1% on Wednesday, driven by heightened geopolitical tensions after U.S. President Donald Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela. Brent crude rose 76 cents to settle at $59.68, while WTI gained 67 cents to $55.94. The move eased some concerns about a growing global surplus of crude, briefly supporting the market.
The rally was tempered by rising U.S. fuel inventories. Gasoline and distillate stockpiles grew more than expected last week, while crude inventories fell by 1.3 million barrels to 424.4 million barrels, according to the Energy Information Administration (EIA). Gasoline inventories increased by 4.8 million barrels to 225.6 million, and distillate stockpiles rose 1.7 million barrels to 118.5 million, adding downward pressure on prices.
Prices had hit near five-year lows in the previous session as signs of progress in Russia-Ukraine peace talks raised the prospect of eased Western sanctions on Moscow, which would increase available supply.
Trump’s announcement comes a week after the U.S. seized a sanctioned tanker off Venezuela’s coast and followed the designation of the Maduro administration as a foreign terrorist organization. The details of how the blockade will be enforced remain unclear, including whether the U.S. Coast Guard will interdict vessels as it did last week. Analysts caution that while the blockade adds short-term uncertainty, it is unlikely to materially tighten global supply on its own.
China remains the largest buyer of Venezuelan crude, which accounts for roughly 1% of global supplies. Venezuelan state-run PDVSA said it had resumed operations at its terminals following a cyberattack that disrupted its administrative systems. Ship-tracking data indicate at least two tankers carrying petroleum byproducts departed the country’s largest port, Jose.
The market remains focused on how geopolitical developments and U.S. inventory dynamics interact, with both factors influencing near-term crude price movements.