LONDON/NEW YORK: Oil prices rallied more than 1percent on Wednesday after US President Donald Trump ordered what he called a complete blockade of all sanctioned oil tankers entering and leaving Venezuela, raising global political tensions and easing concerns about a growing surplus of global crude.
Brent crude futures were up 99 cents, or 1.68 percent, at USD59.91 a barrel at 1606 GMT, while US West Texas Intermediate crude was up 93 cents, or 1.68percent, to USD56.20 a barrel.
Growing US fuel inventories tempered the rise in crude oil prices. Oil prices settled near five-year lows in the previous session on signs of progress in Russia-Ukraine peace talks.
A peace agreement could see Western sanctions on Moscow eased, freeing up supply as the market grapples with fragile global demand. On Tuesday, Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, saying he regarded President Nicolas Maduro’s administration as a foreign terrorist organization.
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