On Thursday, oil prices rose for the first time in three days due to concerns over supply after U.S. President Trump revoked Chevron’s license to operate in Venezuela. Brent crude futures increased by 0.33% to $72.77 per barrel, while U.S. WTI futures rose 0.26% to $68.80. The market reacts to supply tightening amid geopolitical events influencing commodity prices.
Oil prices experienced an uptick on Thursday, recovering after a dip over the past three days, primarily due to concerns regarding supply. This rise follows U.S. President Donald Trump’s decision to revoke a license that allowed Chevron to operate in Venezuela. By 0328 GMT, Brent crude oil futures had increased by 24 cents, reaching $72.77 per barrel, while West Texas Intermediate crude had climbed 18 cents to $68.80 per barrel.
The rise in oil prices comes after futures had settled at their lowest since December 10, 2020, driven by unexpected increases in U.S. fuel inventories and discussions regarding peace negotiations between Russia and Ukraine. Trump’s revocation of Chevron’s license, which had permitted the export of approximately 240,000 barrels per day from Venezuela, is expected to tighten supplies, which has influenced market reactions positively.
Analyst Hiroyuki Kikukawa of NS Trading indicated that the news about Venezuela prompted investors to unwind recent sell-offs amid ongoing ceasefire dialogues between Russia and Ukraine. Furthermore, there are expectations of buying activity from the U.S. Strategic Petroleum Reserve, particularly as West Texas Intermediate prices approach their lowest levels in over two months.
President Trump has expressed intentions to replenish the Strategic Petroleum Reserve swiftly and criticized the current administration for utilizing it to lower gasoline prices. Attention also remains on ongoing Russian-Ukrainian peace negotiations, particularly with Ukrainian President Volodymyr Zelensky scheduled to discuss agreements on rare earth minerals in Washington.
The Energy Information Administration provided insights indicating an unexpected decline in U.S. crude stockpiles as refinery operations increased. Additionally, both gasoline and distillate inventories showed surprising growth. Kikukawa noted that with the seasonal shift from kerosene to gasoline, the inventory-driven sell-off might have reached its conclusion.
Goldman Sachs, in a recent statement, emphasized that the U.S. government’s objectives regarding commodity market dominance and price affordability corroborate their forecast, maintaining Brent crude within a range of $70 to $85—a scenario that favors substantial growth in U.S. oil production.
In conclusion, oil prices have rebounded partly due to President Trump’s reversal of Chevron’s operating license in Venezuela, creating supply concerns as a significant portion of the country’s oil output is affected. Market dynamics, such as shifts in U.S. petroleum stock levels and ongoing geopolitical discussions about peace in Ukraine, also play critical roles in shaping current and future oil prices. The sector continues to adapt as these developments unfold.
Original Source: clubofmozambique.com
