Oil prices rose during Monday’s Asian session as the United States continued to intercept oil tankers near Venezuela, and amid another round of negotiations to end Russia’s invasion of Ukraine.
Brent crude was up 0.7% to US$60.90 per barrel by 2:40 pm AEDT (3:40 am GMT), and West Texas Intermediate climbed 0.7% to $56.92.
The U.S. Coast Guard is pursuing an oil tanker in international waters near Venezuela’s coast, Reuters reported. The tanker, identified as U.S.-sanctioned oil carrier Bella 1, was empty when approaching Venezuela over the weekend.
Last week, U.S. President Donald Trump ordered “A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela”. The U.S. seized a first oil tanker near Venezuela on 10 December, and a second on Saturday.
Venezuela’s oil output dropped to 860,000 barrels per day in November amid the U.S.’ escalating pressure on the country, according to the International Energy Agency. This is a decline from 1.01 million barrels per day in October.
Ukraine also struck a Russia-affiliated oil tanker with aerial drones for the first time on Friday, its security service said. The empty Oman-flagged tanker was in international waters near Libya during the attack.
Ukraine has stepped up its campaign against Russia’s oil infrastructure this month, striking oil rigs and tankers as well as its previous attacks on refineries. Russia’s oil output has been hit further by a decrease in tonnage willing to transport its crude cargo.
“This year, harsher sanctions have significantly raised the compliance and reputational risks associated with participating in Russia crude flows, especially after U.S.’ and E.U.’s coordinated measure targeting Rosneft and Lukoil-linked networks,” wrote Vortexa associate freight analyst Delia He.
Three days of talks between U.S., Ukrainian, and European officials to negotiate an end to Russia’s invasion of Ukraine wrapped up in Florida on Sunday (Monday AEDT). U.S. envoy Steve Witkoff also met with Russian envoy Kirill Dmitriev.
While Witkoff described talks with both Ukrainian officials and with Dmitriev as “productive and constructive”, Russia has said Ukraine’s additions to the U.S. plan to end the war would not improve the likelihood of a peace deal.
