Oil Jumps More Than 2% After Donald Trump Blocks Venezuela
Trump said Venezuela is “completely surrounded by the largest navy ever assembled in the history" of the region.
Quick overview
- Brent crude prices rebounded above $60 a barrel following President Trump's announcement of a blockade on Venezuelan oil tankers.
- West Texas Intermediate (WTI) also saw gains, rising over 2% to $56.39 a barrel.
- Trump labeled Venezuela's government a terrorist organization and demanded the return of U.S. assets, intensifying pressure on the country.
- OPEC projects global oil consumption will reach 106.5 million barrels per day by 2026, driven by growth in the U.S., Asia, and Latin America.
Brent crude rebounded above $60 a barrel after U.S. President Donald Trump announced a “complete and total” blockade on Venezuelan oil tankers. WTI also posted gains of more than 2%.
Oil market shocked after Venezuela was blocked.
Brent crude prices climbed more than 2% on Wednesday, recovering ground after Trump said the United States would impose a sweeping blockade on all oil tankers operating to and from Venezuela.
The European benchmark rose back above $60 a barrel—a level it had fallen below on Tuesday for the first time since the autumn. Brent was trading at $60.23, up 2.22% from the previous session’s close.
Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, gained 2.29% to $56.39 a barrel, erasing much of the losses accumulated in recent sessions.
Rising tensions around Venezuela
The rally followed Trump’s decision to label the “regime” of Nicolás Maduro a terrorist organization and accuse Venezuela of “seizing” U.S. oil. The president demanded the “immediate” return of oil, land, and other assets that he claimed had been “stolen” from Washington.
Trump said Venezuela is “completely surrounded by the largest navy ever assembled in the history” of the region and warned that pressure on the country “will only intensify.”
“The impact will be something never seen before, until they return to the United States all the oil, land, and other assets,” the U.S. president said.
Oil Outlook for 2026
OPEC projects that global oil consumption will average 106.5 million barrels per day (mbd) in 2026, representing a 1.38% increase from this year. Growth is expected to be led by the United States, Asia, and Latin America, according to the cartel’s December monthly report.
The organization links this increase to expectations that the global economy will maintain a growth rate of 3.1% in both 2025 and 2026. For the year now ending, OPEC estimates average consumption of 105.14 mbd, up 1.3% from 2024.
“This forecast is based on sustained economic and petrochemical activity in the major consuming nations, which is expected to support demand for transportation fuels and distillates in 2026,” OPEC said in its analysis.
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