On Thursday, oil prices rose by more than 2%. Brent crude futures closed up 2.1% at $74.04 per barrel, while U.S. crude futures rose 2.5% to $70.35 per barrel. This came after the market was affected by U.S. President Trump's revocation of Chevron's operating license in Venezuela, causing renewed supply concerns. Chevron's license being revoked means the company will not be able to continue exporting crude oil from Venezuela, a move that could further disrupt global oil supplies. If Venezuela's state oil company (PDVSA) decides to redirect the crude previously exported by Chevron to other markets, U.S. refineries will be unable to purchase this oil due to U.S. sanctions.
Chevron's daily crude exports from Venezuela amount to about 240,000 barrels, accounting for a quarter of the country's total oil production. With this event, market concerns about oil supply have intensified, pushing oil prices higher. Nevertheless, the market still needs to watch for a potential increase in Russian oil exports, especially if a peace agreement in Ukraine is reached, as this could further impact the global supply landscape.
Meanwhile, OPEC+ member countries are discussing whether to increase oil production as planned in April or to pause this move. Sources indicate that new U.S. sanctions on Venezuela, Iran, and Russia have made it challenging for member countries to interpret the global supply situation. Experts note that unless clear solutions are proposed on tariffs and Eastern European peace issues, oil prices may remain defensive, with occasional news-driven rebounds.
Trump's involvement in the Russia-Ukraine peace agreement has also become a focal point for the market, and investors will continue to monitor these factors for their potential impact on the global oil market as relevant developments unfold.
