Oil Prices Leap as U.S. Intensifies Its Venezuela Blockade

The U.S. is intensifying its blockade of Venezuelan crude exports. (Courtesy Devon Energy)

Key Points

• Global oil prices rise, with Brent crude and WTI crude futures both trading higher.
• The U.S. intensifies efforts to block Venezuelan crude exports, seizing a vessel with 1.8 million barrels of oil and stopping another earlier this month.
• Venezuela produces approximately 600,000 barrels of crude daily, primarily sold to China. Beijing condemns the U.S. seizures as violating international law.

Global oil prices jumped on Monday as the U.S. accelerated its effort to block crude exports from Venezuela. Reports suggested the “active pursuit” of a tanker headed toward the South American coast.

The U.S., which ordered a “total and complete blockade” on Venezuelan crude exports last week after President Donald Trump accused the country of stealing American oil assets, seized a Panamanian-flagged vessel over the weekend carrying 1.8 million barrels of oil. Another ship was stopped and boarded earlier this month.

Venezuela, which is led by controversial leader Nicolas Maduro, produces around 600,000 barrels of crude each day through state-owned Petróleos de Venezuela SA, most of which is sold to buyers in China. Earlier Monday, Beijing’s foreign ministry spokesman, Lin Jian, said the seizures “grossly violate international law.”

“The key questions are, first, how effective this blockade will be, and second, how long it will last,” said Warren Patterson, head of commodities strategy at ING. “This will be important in determining the impact on the oil market.”

Reports also suggested the Trump administration was preparing tougher sanctions on Russia’s crude exports should peace talks with Ukraine fail to produce a ceasefire in the nearly four-year conflict.

Created with Highcharts 9.0.1Source: FactSetNote: continuous contracts for crude futuresAs of Dec. 22

Created with Highcharts 9.0.1BrentWTI2025Dec.-25-20-15-10-5051015%

Brent crude futures for February delivery, the global pricing benchmark, rose 2.65% to $62.07 a barrel, according to Dow Jones Market Data. West Texas Intermediate crude futures, which are more closely linked to U.S. gasoline prices, for the same month rose 2.6% to $58.01 a barrel.

Global crude markets, however, remain awash with excess crude amid record production from the United States and fading demand from China.

The International Energy Agency forecasts a daily surplus of around 3.84 million barrels each day next year, while the OPEC producing cartel and its non-member allies, such as Russia, see it largely in balance over the whole of 2026.

Write to Martin Baccardax at martin.baccardax@barrons.com