Ammon News - Oil prices rose more than 1% on Wednesday after U.S. President Donald Trump ordered "a total and complete" blockade of all sanctioned oil tankers entering and leaving Venezuela, raising fresh geopolitical tensions at a time of concerns over demand.

Brent crude futures were up 79 cents, or 1.3%, at $59.71 a barrel at 0500 GMT, while U.S. West Texas Intermediate crude rose 77 cents, or 1.4%, to $56.04 a barrel.

Oil prices settled near five-year lows in the previous session on progress in Russia-Ukraine peace talks, as a deal may see Western sanctions on Moscow eased, freeing up supply even as the market grapples with fragile global demand.

Trump on Tuesday ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, adding that he now regarded the nation's rulers as a foreign terrorist organization.

The move could potentially impact 0.4-0.5 million barrels of oil per day, lifting prices by $1-2 per barrel, according to a U.S. oil trader.

However, crude oil traders in Asia said a recovery in futures buying, after prices dipped below $60 per barrel the previous day, was also a key driver of the uptick in oil on Wednesday.

Reuters