Oil surges 1.5% after Trump’s blockade on Venezuela coast

Oil barrels

Oil prices rose in early session today, Dec. 17, after US President Donald Trump imposed a complete blockade to intercept all oil tankers subject to sanctions as they enter and leave Venezuela. Markets are also awaiting the US Energy Information Administration's report on crude oil inventories in the US.

Brent crude was trading up 1.4% at $59.75 a barrel, at 09:07 am Makkah time. West Texas Intermediate (WTI) rose 1.5% to $56.10 a barrel.

It remains unclear how many oil tankers will be affected by Trump's decision, and how the US will enforce the blockade on the sanctioned vessels, Reuters reported.

Estimates from the American Petroleum Institute showed that crude oil inventories in the US fell by about 9.3 million barrels during the week ended Dec. 12, and official data due today is expected to show a decline in crude oil inventories.