Oil climbs again as US seizes tanker off Venezuela, fueling supply fears

Oil rose for a second straight session after the United States seized a sanctioned tanker off Venezuela's coast, adding to concerns about potential supply disruptions. Brent crude futures traded around $62.48 a barrel, while U.S. West Texas Intermediate hovered near $58.79 a barrel, with small gains for both benchmarks. Analysts noted that the move reflected a mix of sanctions-driven risk and broader geopolitical tension that could keep prices elevated into year-end.

The developments come as traders weigh reports of Ukraine striking a vessel linked to Russia's shadow fleet in the Black Sea, reinforcing worries about tighter global supplies amid ongoing conflict in the region. With sanctions layered onto shipments from major producers like Russia and Venezuela, Asian buyers have reportedly pressed for substantial discounts on Venezuelan crude amid rising loading risks and a firmer cargo-supply environment.

Market participants said the price action suggests Brent could stay above a key support level around $55 a barrel through the end of the year unless there is an unexpected breakthrough in Ukraine peace talks or a shift in sanctions policy. The general backdrop of sanctions and shipping risk has kept traders attuned to every new development, from fleet movements to port loadings.

In this context, oil markets remain sensitive to headlines from the Caribbean and the Black Sea, with investors balancing potential supply disruptions against the prospect of renewed demand and policymakers’ actions that could alter the risk premium attached to crude. Traders will be watching for further sanctions news, shipping updates, and any signs of demand resilience as winter approaches.

Cover image source: U.S. Seizes Oil Tanker Near Venezuela As Tensions Rise 🔗

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