Oil prices rose in early trade on Wednesday following heightened tensions between the United States and Venezuela.
Brent crude for February delivery climbed to $59.84 a barrel, up 92cents, while US West Texas Intermediate (WTI) for January delivery gained 90 cents to $56.17 a barrel.
On Tuesday, prices had fallen to their lowest levels since 2021.
The price movements came after US President Donald Trump linked the significant US military presence off Venezuela's coast to the South American country's oil reserves and ordered a "TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS" entering or leaving Venezuela.
The US seized an oil tanker off the Venezuelan coast last week,marking a sharp escalation in Trump's campaign against President Nicolás Maduro's government.
Despite the geopolitical tension, ING commodities analyst Warren Patterson said investors were likely to remain calm. Potential supply risks are already priced in, and the recent price reaction shows the oil market is not overly worried, he said.
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