17.12.202511:05:56UTC+00Crude Prices Jump After US Blocks Venezuela

On Wednesday, West Texas Intermediate (WTI) crude oil futures climbed by more than 2%, surpassing $56 per barrel. This increase comes after the previous session saw values plummet to near a five-year low. The rebound followed President Donald Trump's directive for a "total and complete" blockade of sanctioned oil tankers associated with Venezuela. This recent move was prompted by last week's seizure of these sanctioned tankers near Venezuela's coast and an increased US military presence in the area. Despite this, several factors continue to exert downward pressure on oil prices, including weak demand and positive developments in the Ukraine peace talks, which could cap any potential rally. Progress towards a peace agreement between Russia and Ukraine has raised hopes of reducing restrictions on Russian oil exports, coinciding with market concerns over potential oversupply. This year, oil prices have faced challenges due to an abundant supply, with OPEC+ methodically restoring previously reduced production capacity and non-OPEC countries boosting output. Additionally, early indicators of diminishing demand are becoming evident in regions such as China, the Middle East, and the United States. Consequently, oil remains on course for its poorest annual performance in seven years.