Oil prices increased on Thursday following President Trump’s cancellation of Chevron’s license to operate in Venezuela. The rises were moderated by emerging peace prospects in Ukraine and an unexpected increase in U.S. gasoline and distillate stocks. Prices remain near two-month lows, emphasizing the impact of geopolitical events on market stability.
On Thursday, oil prices experienced a rebound following the revocation of a license that allowed U.S. oil giant Chevron to conduct operations in Venezuela, as announced by President Donald Trump. However, the increase in prices was restricted due to the potential for a peace agreement in Ukraine, which could lead to an increase in oil supplies from Russia, coupled with unexpected rises in U.S. gasoline and distillate stockpiles.
By 1049 GMT, Brent crude oil futures rose by 71 cents to $73.24 per barrel, representing an increase of 0.98 percent. Concurrently, U.S. West Texas Intermediate crude oil futures climbed by 64 cents to $69.26, reflecting a 0.93 percent rise. Despite this upward movement, both types of oil had settled at their lowest prices since December 10 and have incurred losses of approximately 4.5 percent during the current month.
Tamas Varga, an analyst at PVM, noted, “Prices are stabilizing this morning around their two-month lows after Trump reversed Chevron’s licence to export Venezuelan oil.” Market participants are also keeping a close eye on President Trump’s endeavors concerning a peace deal between Russia and Ukraine.
President Trump indicated that Ukrainian President Volodymyr Zelenskiy would visit Washington on Friday to formalize an agreement related to rare earth minerals, although President Zelenskiy mentioned that the success of these discussions depends on the continuation of U.S. support.
Mr. Varga further stated, “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.” The Energy Information Administration reported a surprise reduction in U.S. crude oil stockpiles last week, alongside increased refining activity, while gasoline and distillate inventory levels unexpectedly climbed.
In summary, oil prices rebounded due to Chevron’s license revocation in Venezuela, but gains were tempered by potential peace developments in Ukraine and unexpected rises in U.S. fuel inventories. Analysts express the need for clarity in market conditions to foster price stability. As such, oil prices may continue to experience volatility influenced by geopolitical events and supply indicators.
Original Source: www.channelnewsasia.com
