Oil Prices Rise After U.S. Intercepts Tanker Near Venezuela

BY COMFORT OGBONNA

Oil prices climbed in early trading on Monday after the United States intercepted an oil tanker off the coast of Venezuela in international waters, adding to growing geopolitical tensions that have recently supported crude markets.

Brent crude futures rose 44 cents, or 0.73%, to $60.91 per barrel by 0141 GMT, while U.S. West Texas Intermediate (WTI) crude gained 40 cents, or 0.71%, to trade at $56.92 per barrel. The gains marked a rebound after both benchmarks posted losses over the past two weeks.

U.S. officials said the Coast Guard is also pursuing another oil tanker in international waters near Venezuela. If successful, it would represent the second such operation over the weekend and the third interception in less than two weeks, highlighting Washington’s stepped-up enforcement efforts against sanctioned Venezuelan oil shipments.

The renewed strength in oil prices has been driven by a series of geopolitical developments. These began with U.S. President Donald Trump’s announcement of a “total and complete” blockade on sanctioned Venezuelan oil tankers, a move that raised concerns about potential supply disruptions. Sentiment was further supported by reports of a Ukrainian drone strike on a Russian shadow fleet vessel in the Mediterranean Sea, adding to uncertainty around global energy flows.

According to market analysts, these events have dampened optimism that diplomatic efforts to end the war in Ukraine will yield a lasting agreement in the near term. Ongoing doubts about peace talks have increased the risk premium priced into oil markets, helping to counterbalance persistent concerns about global oversupply.

Analysts noted that recent geopolitical risks, combined with technical factors following last week’s failed break to lower price levels, have shifted the balance of risks closer to the upside for crude prices. This comes after Brent and WTI both fell about 4% during the week of December 8 and declined by roughly 1% last week.

On the diplomatic front, U.S. special envoy Steve Witkoff said discussions held over the past three days in Florida between U.S., European, and Ukrainian officials focused on aligning positions aimed at ending Russia’s war in Ukraine. He described those meetings, along with separate talks involving Russian negotiators, as productive.

However, a senior foreign policy aide to Russian President Vladimir Putin said that changes proposed by European and Ukrainian officials to U.S. peace proposals had not improved the prospects for a settlement, underscoring the challenges facing negotiations and reinforcing uncertainty that continues to support oil prices.