Oil prices rise over 1% amid supply disruptions from Venezuela

Oil prices rose more than 1% on Wednesday after US President Donald Trump ordered a total and complete blockade of all sanctioned oil tankers entering and leaving Venezuela, Report informs via Reuters.

This move has heightened geopolitical tensions amid ongoing concerns about global demand.

Brent crude futures rose 79 cents, or 1.3%, to $59.71 per barrel by 5:00 GMT. US West Texas Intermediate crude rose 77 cents, or 1.4%, to $56.04 per barrel.

A day earlier, oil prices held near five-year lows amid negotiations over the Russia-Ukraine conflict. A possible agreement could lead to the easing of Western sanctions against Moscow and an increase in supply amid weak global demand.

Analysts point out that the oil market currently remains well supplied, but if the embargo remains in place for a long time, oil prices will likely continue to rise.