Oil Prices Continue to Rise Amid Escalating Geopolitical Tensions

SadaNews - Oil prices rose for the second consecutive day, as the geopolitical risks stretching from Venezuela to Russia outweighed the negative global supply forecasts.

Brent crude, the global benchmark, initially rose to nearly $61, before pulling back some gains during the day after U.S. President Donald Trump refrained from addressing the recent developments in Venezuela during a speech from the White House. Meanwhile, West Texas Intermediate prices surpassed $56.

This week, Washington imposed a blockade on oil tankers subjected to sanctions coming from Venezuela, at a time when President Trump accused Caracas of seizing "U.S. energy rights."

Supply Pressures and Developments in Venezuela

Oil is heading towards an annual loss amidst concerns that global supply may outstrip demand, after West Texas Intermediate touched its lowest level since 2021 earlier this week, before tensions provided some support to prices. Market indicators from the Middle East to the United States showed increasing signs of weakness.

Mukesh Sahdev, CEO of XAnalysts Pty, stated, "This is not the time to short the market," referring to betting on losses.

The United States is also preparing to impose a new round of sanctions on the Russian energy sector if President Vladimir Putin rejects a peace agreement with Ukraine. Options under consideration include increasing pressure on the so-called "shadow fleet" of oil tankers and traders facilitating exports.

In Venezuela, oil storage facilities and tankers docked in its ports are filling up rapidly, according to sources familiar with the situation. If capacity reaches its limit, the state-owned company PDVSA, which is close to producing a million barrels per day, may be forced to shut some wells.

In an address via state television, President Nicolas Maduro stated that he spoke on Wednesday with UN Secretary-General Antonio Guterres. He added, "The United States seeks to change the regime to impose a puppet government that won't last 47 hours, ceding sovereignty and wealth, and turning Venezuela into a colony." He continued, "This will never happen."

In the same context, Chinese Foreign Minister Wang Yi expressed his country's support for Venezuela on Wednesday, criticizing what he described as unilateral coercion, just hours after Trump issued the blockade order. The senior Chinese diplomat told his Venezuelan counterpart Ivan Gil that Beijing opposes "unilateral bullying," according to an official statement.