Oil prices rose today after the US intercepted an oil tanker in international waters off the coast of Venezuela and tensions in Russia's war against Ukraine remained high, with both developments raising fears of supply disruption.
Brent crude futures gained $1.31, or 2.17%, to $61.78 a barrel this afternoon, while US West Texas Intermediate crude rose by $1.25, or 2.2%, to $57.77.
Market participants now see a risk of disruption to Venezuelan oil exports because of the US embargo, having previously been complacent in that regard, said UBS analyst Giovanni Staunovo.
Venezuelan crude accounts for about 1% of global supply.
Growing supply from the US and the OPEC+ producer group have largely offset worries over supply disruption elsewhere to keep Brent futures around $65 a barrel in the second half of 2025, though prices have eased in the past month because of oversupply concerns.
Oil prices have been supported by developments off Venezuela while Russia-Ukraine tensions simmer in the background in an otherwise very bearish market, said June Goh, analyst at Sparta Commodities.
The US Coast Guard is pursuing an oil tanker in international waters near Venezuela in what would be the second such operation over the weekend and the third in less than two weeks if successful, officials told Reuters on Sunday.
A rebound in oil prices has been sparked by US President Donald Trump's announcement of a "total and complete" blockade of sanctioned Venezuelan oil tankers and subsequent developments there, followed by reports of a Ukrainian drone strike on a Russian shadow fleet vessel in the Mediterranean, said IG analyst Tony Sycamore.
The Brent and WTI benchmarks fell by about 1% last week.
US special envoy Steve Witkoff said yesterday that talks between US, European and Ukrainian officials in Florida over the past three days in an effort to end Russia's war in Ukraine had focused on aligning positions.
Those meetings and separate talks with Russian negotiators had been productive, he said.
However, the top foreign policy aide of Russian President Vladimir Putin said that changes made by the Europeans and Ukraine to US proposals had not improved prospects for peace.
