International News 19 December 2025
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Oil Prices Rise on Trump’s Venezuela Tanker Blockade Despite Supply Concerns
Oil prices climbed more than 1% on Wednesday after U.S. President Donald Trump ordered a blockade on all sanctioned oil tankers entering and leaving Venezuela, heightening geopolitical tensions and easing fears of a growing global crude surplus. Brent crude futures for February 2026 settled up 76 cents, or 1.3%, at US$59.68 per barrel, while West Texas Intermediate (WTI) for January 2026 gained 67 cents, or 1.2%, to US$55.94 per barrel. The rebound came after prices had closed near five-year lows in the previous session, weighed down by expectations of oversupply and signs of progress in Russia–Ukraine peace talks that could eventually loosen sanctions on Russian oil. However, the rally was capped by rising U.S. fuel inventories and skepticism over the long-term impact of the Venezuela blockade. Analysts noted that while the move may create short-term volatility and a modest risk premium, it is unlikely to materially tighten global supply, as some Venezuelan oil continues to flow through non-sanctioned routes, including shipments to China, its largest buyer. U.S. Energy Information Administration (EIA) data showed crude inventories fell by 1.3 million barrels last week, but gasoline stocks surged by 4.8 million barrels and distillates rose 1.7 million barrels, exceeding expectations and underscoring persistent demand concerns that continue to weigh on the oil market outlook.
Oil Prices Rise Over 1% After Trump Orders Blockade of Sanctioned Venezuelan Tankers
Global oil prices closed more than 1% higher on Wednesday after U.S. President Donald Trump ordered a blockade on all sanctioned oil tankers entering or leaving Venezuela, heightening geopolitical tensions and easing concerns over a looming global crude surplus. Brent crude for February 2026 delivery rose $0.76 (1.3%) to $59.68 per barrel, while WTI crude for January 2026 gained $0.67 (1.2%) to $55.94 per barrel. The move followed recent price weakness driven by expectations of a potential Russia–Ukraine peace deal, which could eventually lead to the easing of Western sanctions on Russian oil supplies. Despite the geopolitical risk premium, gains were capped by rising U.S. fuel inventories and skepticism over the long-term impact of the Venezuela measures. Analysts noted that while short-term volatility may increase, the blockade alone is unlikely to materially tighten global supply, especially as some Venezuelan oil continues to flow via non-sanctioned routes and to key buyer China, which accounts for about 1% of global supply. U.S. data showed crude inventories fell 1.3 million barrels last week, but gasoline and distillate stocks rose more than expected, weighing on prices. Meanwhile, Venezuela’s state oil company PDVSA said it had resumed shipments after a cyberattack, adding further uncertainty over the actual supply impact.
Thailand’s Central Bank Cuts Rates by 25 bps as Growth Outlook Weakens
Thailand’s central bank cut its benchmark one-day repurchase rate by 25 basis points to 1.25% on Wednesday, in line with market expectations, to support an economy facing slowing growth amid political uncertainty, a stronger baht, and the impact of U.S. tariffs. The decision, approved unanimously by the Bank of Thailand’s Monetary Policy Committee, marked the fifth rate cut since October 2024, bringing total easing to 125 bps. The central bank said rising risks and clearer signs of economic slowdown justified a more accommodative stance, though it acknowledged that room for further easing is becoming increasingly limited. The BOT now forecasts Thailand’s economy to grow 2.2% in 2025, while cutting its 2026 growth outlook to 1.5% from 1.6%, after GDP expanded just 1.2% year-on-year in Q3 2025, the slowest pace in four years. Inflation forecasts were also revised lower, with 2025 inflation seen at -0.1% and 2026 at 0.3%, reflecting lower global energy prices and government subsidies, though deflation risks remain contained. Policymakers reiterated their commitment to closely monitor the baht—up about 9% against the U.S. dollar this year—as its strength weighs on exports and tourism. Economists remain divided on the outlook, with many expecting at least one more rate cut in early 2026 as weak consumption, subdued government spending, and external pressures continue to cloud Thailand’s recovery.
https://internasional.kontan.co.id/news/bank-sentral-thailand-pangkas-suku-bunga-25-bps-jadi-125