Crude oil prices have rallied following a sharp escalation in geopolitical tensions, with ANZ highlighting increased pressure from the US on Venezuela’s oil exports as a primary driver. President Trump has ordered a blockade of sanctioned oil tankers entering and leaving Venezuela, a move that follows the seizure of an oil tanker and the deployment of military assets near the country. ANZ analysts suggest these actions threaten to disrupt a notable portion of global crude oil supply.
In November, Venezuela exported approximately 950,000 barrels per day of crude and fuel, including about 780,000 barrels per day of crude oil. The news of the US blockade prompted Brent crude to jump by more than 1 per cent. However, gains were somewhat limited by uncertainty regarding the actual volume of supply that will ultimately be affected by the US intervention.
ANZ also noted that broader geopolitical risks remain high, even as signs emerge that Ukraine is approaching a potential peace agreement. There are growing concerns that Russia may reject the proposed terms.
Brent Crude Oil was last up by 2.6 per cent to $US60.44 per barrel, rebounding from a five-year low recorded in the previous trading session.
