Oil prices rose after President Trump revoked Chevron’s license to operate in Venezuela, raising supply concerns. Brent crude increased by 0.98% to $73.24 per barrel, and West Texas Intermediate rose by 0.93% to $69.26. While prices rebounded, they are influenced by potential peace talks in Ukraine and unexpected gains in U.S. gasoline and distillate stocks.
Oil prices increased on Thursday following news that U.S. President Donald Trump revoked Chevron’s operating license in Venezuela. This change has heightened concerns regarding oil supply, despite some moderation in gains due to potential developments in the Ukraine conflict, which may lead to increased oil flow from Russia. Brent crude futures rose by 71 cents to $73.24 per barrel, while U.S. West Texas Intermediate crude climbed 64 cents to $69.26 per barrel, reflecting a rebound from their recent lows.
Analysts note that oil prices are stabilizing around two-month lows as the market processes the implications of Chevron’s license cancellation. Tamas Varga, an analyst at PVM, emphasized that, “Prices are stabilizing this morning around their two-month lows after Trump reversed Chevron’s license to export Venezuelan oil.” Additionally, market dynamics are influenced by Trump’s engagement in peace efforts between Russia and Ukraine.
There are ongoing discussions about a potential agreement between Ukrainian President Volodymyr Zelenskiy and the U.S., set for Friday, concerning rare earth minerals. However, the success of such negotiations appears contingent upon continued U.S. support for Ukraine. Varga remarked, “Markets like clarity as opposed to uncertainty. Unless a clear path is presented on tariffs and Eastern European peace, oil prices will remain on the defensive with sporadic and spontaneous headline-based rallies.”
Data from the Energy Information Administration indicated a surprising decrease in U.S. crude oil stockpiles last week, attributed to a rise in refining activity. Conversely, inventories of gasoline and distillates registered unexpected increases, which may further influence market behavior in the upcoming days.
In summary, the cancellation of Chevron’s license by President Trump has led to an uptick in oil prices due to renewed supply concerns. However, potential peace negotiations in Ukraine and rising U.S. gasoline and distillate inventories may temper these gains. Analysts stress that clarity in geopolitical matters is essential for stable oil pricing moving forward. Market sentiment remains cautious as stakeholders await further developments affecting supply dynamics.
Original Source: www.channelnewsasia.com
