Oil up after US seized tanker off coast of Venezuela

Oil drilling rigs

Oil prices rose at the close of volatile trading today, Dec. 10, after US President Donald Trump confirmed that his country had seized a tanker sailing off the Venezuelan coast, raising concerns about disruption to global supplies.

Brent crude futures for February delivery rose 0.44%, or 27 cents, to $62.21 a barrel, after falling 0.81% earlier in the session. WTI crude oil futures for January delivery also rose by 0.36%, or 21 cents, to $58.46 a barrel.

Trump confirmed in media statements today that his country had seized an oil tanker off the coast of Venezuela, in a major escalation of the pressure campaign he has been waging for four months against the Latin American country and its president, Nicolas Maduro.

Oil prices came under pressure during today's session, following the release of data showing that gasoline inventories in America rose by 6.4 million barrels last week, and distillate inventories increased by 2.5 million barrels.

This is despite commercial crude oil inventories in the world's largest economy falling by 1.8 million barrels during the same period.

In addition, also weighing on prices was the possibility that Western countries will ease their sanctions on the Russian energy sector if peace talks with Ukraine succeed in ending the nearly four-year-long war between the two neighbors.