Oil prices rose on Wednesday after officials said the US seized an oil tanker off the coast of Venezuela, adding to prompt supply concerns.
Brent crude futures rose 33 cents, or 0.5 per cent, to $62.27 a barrel by 14:21 ET. US West Texas Intermediate crude futures rose 28 cents, or also 0.5 per cent, to $58.53.
The US seized an oil tanker off the coast of Venezuela, two US officials told Reuters. The officials did not name the tanker and did not say specifically where the interdiction took place.
The seizure, led by the US Coast Guard, further inflames prompt supply concerns in a market that was already worried about movements of Venezuelan, Iranian and Russian barrels, said Rory Johnston, founder of the Commodity Context newsletter.
He added, however, that it does not immediately change the fundamental supply-demand balance.
Oil prices will likely react more sharply if the seizure is followed up by more such actions, said Ed Hayden-Briffett, oil analyst at Onyx Capital Group.
(Reporting by Shariq Khan, Shadia Nasralla and Robert Harvey. Additional reporting by Emily Chow. Editing by David Goodman, Mark Potter and David Gregorio)
