Oil prices rise on risk of disruptions to Venezuela, Russia supply

Oil prices rose on Monday after the U.S. Coast Guard began pursuing an oil tanker in international waters near Venezuela a day earlier, and Ukraine damaged two vessels and piers in Russia, raising the risk of oil supply disruptions.

Brent crude futures gained $1.38, or 2.3%, to $61.85 a barrel by 11:34 a.m. ET (1634 GMT). U.S. West Texas Intermediate crude rose by $1.29, or 2.3%, to $57.81 a barrel.

The U.S. Coast Guard was in active pursuit of an oil tanker on Sunday that U.S. officials said is part of Venezuela's illegal sanctions evasion, the third such operation this month. The pursuit followed U.S. President Donald Trump's announcement last week of a blockade of oil tankers under sanctions entering and leaving Venezuela.

Market participants see a risk of disruption to Venezuelan oil exports because of the U.S. embargo, having previously downplayed the risk, said UBS analyst Giovanni Staunovo.

Venezuelan crude accounts for 1% of global supply.

Oil prices were also rising because of reports of Ukrainian drone attacks on Russian ships at a Black Sea port, oil trading advisory firm Ritterbusch and Associates said in a note.