Oil Prices Rise To 2-week High

(RTTNews) - Despite a report showing an increase in crude inventories last week, oil prices climbed to a two-week high Wednesday morning amid escalating geopolitical tensions.

Data from the American Petroleum Institute showed a 2.4 million-barrel increase in crude inventories I the U.S. last week. Gasoline and distillate stockpiles rose as well last week.

Data from the Energy Information Administration (EIA) is due at 10.30 AM ET.

West Texas Intermediate Crude oil futures for February are trading at $58.58, gaining $0.20 or about 0.35%.

Brent crude futures are up $0.18 or 0.29% at $62.57 a barrel.

After designating the regime of Nicolas Maduro in Venezuela as a "foreign terrorist organization," indulging in illegal narco-trafficking, causing an opioid crisis in the U.S., U.S. President Donald Trump ordered a naval blockade offshore Venezuela to all "sanctioned vessels" entering and exiting Venezuelan port.

The U.S. military has already seized two vessels off Venezuelan coast with the U.S. Coast Guard heading to hold another one.

Trump has announced that the U.S. will either keep the oil in the tankers to replenish its strategic reserves or sell it on the market. Trump added that the U.S. would keep the seized ships.

Meanwhile, an end to the Ukraine-Russia war remains elusive. After Ukraine hit a Tamanneftegaz oil terminal in Russia's Krasnodar region, Russian forces attacked Ukraine's Black Sea port of Odesa on Monday, damaging the port facilities and a ship.

The strike damaged energy infrastructure, disrupting power supply to around 120,000 people in the region.