Oil prices increased on Thursday following President Trump’s cancellation of Chevron’s Venezuela license. While prices rose, gains were limited by potential peace developments in Ukraine and a rise in U.S. gasoline inventories. Brent crude reached $73.24 per barrel and WTI climbed to $69.26, but both benchmarks have seen significant monthly losses.
Oil prices experienced an upward movement on Thursday following U.S. President Donald Trump’s decision to revoke a license previously granted to Chevron, allowing it to operate in Venezuela. The rise in oil prices highlights renewed concerns about supply amidst a backdrop of geopolitical issues affecting the market.
However, gains in oil prices were limited by potential developments regarding a peace agreement in Ukraine, which could increase oil flows from Russia. Additionally, an unexpected rise in U.S. gasoline and distillate inventories also contributed to a more tempered market response.
As of 10:49 GMT, Brent crude futures rose by 71 cents, or 0.98 percent, reaching a price of $73.24 per barrel. Meanwhile, U.S. West Texas Intermediate crude futures increased by 64 cents, or 0.93 percent, settling at $69.26. Both benchmarks have notably lost around 4.5 percent throughout the month and had previously declined to their lowest levels since December 10.
Tamas Varga, an analyst at PVM, stated, “Prices are stabilizing this morning around their two-month lows after Trump reversed Chevron’s licence to export Venezuelan oil.” Attention is also directed towards Trump’s efforts to facilitate peace talks between Russia and Ukraine.
Reportedly, President Trump indicated that Ukrainian President Volodymyr Zelenskiy would visit the United States on Friday to formalize an agreement regarding rare earth minerals. However, Zelenskiy emphasized that the success of these negotiations would depend on continued U.S. support.
Varga added, “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.” Furthermore, the Energy Information Administration reported an unexpected decline in U.S. crude oil inventories, accompanied by increased refining activity.
In summary, oil prices rose due to President Trump’s revocation of Chevron’s operating license in Venezuela, amid supply concerns. However, potential peace developments in Ukraine and rising U.S. gasoline stocks have tempered these gains. Experts suggest that clarity in geopolitical situations will dictate future oil price stability.
Original Source: www.channelnewsasia.com
