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WTI Holds 'Venezuela Blockade' Gains After Small Crude Draw, Record US Production
Oil prices surged overnight, jumping off multi-year lows after President Trump ordered a "total and complete blockade" of oil tankers into and out of Venezuela.
That was amid hopes of a peace deal between Ukraine and Russia, among other factors including record domestic production and weakening demand in China.
But as one geopolitical risk looks set to ease, another one is ramping up. Trump said Venezuela was "completely surrounded by the largest Armada ever assembled in the History of South America," in a post on Truth Social late Tuesday.
However, the rally in oil prices may end up being short-lived unless other catalysts start to emerge.
"Ultimately, the trend is lower for oil, with it likely to persist unless there's a pick-up in global industrial activity, a bigger supply shock, or -- most likely -- intervention from OPEC to support prices," Capital.com analyst Kyle Rodda said in a note Wednesday.
But if ...