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Oil Prices Rebound Over 1.5% on Geopolitical Risks; Trump's Lockdown Order Sparks Supply Concerns 1. International oil prices rose more than 1.5% on Wednesday, with WTI crude rising as much as 1.74% to $56.09 per barrel and Brent crude rising as much as $1.72 to $59.856 per barrel. US President Trump ordered a "complete and thorough" blockade of all sanctioned oil tankers entering and leaving Venezuela. This move, against the backdrop of weak global demand prospects, has triggered new geopolitical tensions and brought uncertainty to the oil market. 2. Trump announced the blockade order late Tuesday, stating that he had designated the Venezuelan rulers as a "foreign terrorist organization." A US oil trader estimated that this move could affect 400,000-500,000 barrels of oil supply per day, pushing oil prices up by $1-2 per barrel. 3. However, Asian oil traders pointed out that Wednesday's price increase was also driven by a recovery in buying in the futures market after it fell below $60 per barrel the previous day. One trader stated, "Today's prices were mainly driven by sentiment surrounding Venezuelan news, but overall, Venezuela's exports account for a small share of global supply. Given that the market focus remains on the Russia-Ukraine negotiations, oil prices still face downside risks." Another trader believes this rally may be unsustainable, stating, "This could be a good opportunity to establish short positions." Currently, although many oil tankers operating in Venezuela are sanctioned, some vessels transporting Venezuelan oil, as well as Iranian and Russian crude, remain outside the sanctions. Furthermore, Chevron can continue to transport Venezuelan crude to the United States using tankers previously chartered under US government authorization. Analysts point out that while the overall oil market supply is currently ample, a prolonged blockade could drive crude oil prices further up.