Oil rises after US President Trump orders blockade of oil tankers into and out of Venezuela
The US President has ordered a blockade of sanctioned oil tankers entering and leaving Venezuela, while designating the regime of President Nicolas Maduro as a "FOREIGN TERRORIST ORGANIZATION" [1]. This marks an escalation in pressure from the US administration on the Venezuelan leader, following an oil tanker seizure last week and strikes on alleged drug-trafficking vessels.
The move raises supply concerns, as Venezuela is a significant OPEC member and has been producing around one million barrels per day in recent months, according to the International Energy Agency (IEA) [2]. This development comes at a time when a Ukraine peace deal remains elusive, while OPEC+ has announced a pause in its output hikes for the first quarter of 2026 [3]. In addition, the blockade could trigger broader geopolitical frictions, as most Venezuelan oil is shipped to China, accounting for 69% of its crude exports in 2023, according to the US Energy Information Administration (EIA). [4]
As a result, USOil jumped today and has the chance to push towards the 200-day EMA, which could challenge the prevailing bearish bias. However, oil prices set a near five-year low on Tuesday and remain vulnerable to further declines amid unfavourable fundamentals.
A prolonged blockade could have a material impact, but for now the market is well supplied. Moreover, ongoing diplomatic efforts raise the prospect of a Ukraine peace agreement that could unlock additional Russian oil, with President Trump stating that such an outcome is now closer than ever [5]. Meanwhile, recent weak data from China and global economic headwinds stemming from disruptive tariffs continue to weigh on demand and sustain concerns over a supply glut.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 17 Dec 2025 https://truthsocial.com/@realDonaldTrump/posts/115731908387416458 | |
| Retrieved 17 Dec 2025 https://www.iea.org/reports/oil-market-report-december-2025 | |
| Retrieved 17 Dec 2025 https://www.opec.org/pr-detail/1574583-30-november-2025.html | |
| Retrieved 17 Dec 2025 https://www.eia.gov/international/content/analysis/countries_long/Venezuela/pdf/venezuela_2024.pdf | |
| Retrieved 14 May 2026 https://www.youtube.com/watch |
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