Oil prices rose Monday as US ramps up action against Venezuela tankers
/ Our Today
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Oil prices are on the upward move again, as the US intercepted a second oil tanker in international waters off the coast of Venezuela on Monday.
The rise in oil prices after the second oil tanker seizure by the Americans comes as tensions in Russia’s war against Ukraine remained high, with both developments raising fears of oil supply disruption. Brent crude futures gained US$1.31, or 2.17%, to US$61.78 a barrel. US West Texas Intermediate crude rose by US$1.25, or 2.2%, to US$57.77.
Market participants now see a risk of disruption to Venezuelan oil exports because of the US embargo, having previously been complacent in that regard, explained UBS analyst Giovanni Staunovo. Venezuelan crude accounts for about 1% of global supply.
Growing supply from the U.S. and the OPEC+ producer group has largely offset worries over supply disruption elsewhere to keep Brent futures around US$65 a barrel in the second half of 2025, though prices have eased in the past month because of oversupply concerns.
Oil prices have been supported by developments off Venezuela, while Russia-Ukraine tensions simmer in the background in an otherwise very bearish market, argues June Goh, analyst at Sparta Commodities. The U.S. Coast Guard is pursuing an oil tanker in international waters near Venezuela in what would be the second such operation over the weekend and the third in less than two weeks if successful.
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