NEW YORK: Oil prices rose about 2 percent on Thursday after two days of declines as investors assessed developments in Venezuela and on worries about supplies from Russia, Iraq and Iran.
Brent futures rose USD1.21, or 2percent, to USD61.17 per barrel at 11:17 a.m. EST (1617 GMT), while US West Texas Intermediate crude gained USD1.02, or 1.8percent, to USD57.01.
The US seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, one sailing under Russia’s flag, as part of US President Donald Trump’s aggressive push to dictate oil flows in the Americas and force Venezuela’s socialist government to become an ally.
After capturing Venezuela President Nicolas Maduro in a Saturday military raid on Caracas, the US is escalating its blockade of vessels that are under sanctions and going to and from the South American country, a member of the Organization of the Petroleum Exporting Countries oil producers group.
“The complex is rebounding with the crude benchmarks back to about levels of last Friday’s close prior to the US removal of Maduro,” analysts at energy advisory firm Ritterbusch and Associates said in a note.
“The fact that this major development is having little impact on the energy complex is not surprising since the arrival of a meaningful amount of Venezuelan crude into the (US) Gulf coast region could be years away,” Ritterbusch said.
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