WTI holds gains above $68.50 as Trump decides to revoke Chevron’s Venezuela license
WTI Oil price holds ground amid supply concerns after Trump cancels Chevron's Venezuela license.
Oil prices faced headwinds amid rising concerns over global economic growth, with fears that Trump tariffs could weaken demand.
The possibility of a Russia-Ukraine peace deal and the potential easing of Russian sanctions have weighed on Oil prices.
West Texas Intermediate (WTI) Oil price maintains its position above the two-month low of $68.29, recorded on February 26, currently hovering around $68.70 per barrel during European trading hours on Thursday. Crude Oil prices receive some support from supply concerns as US President Donald Trump announced plans to revoke Chevron Corp.’s Oil license in Venezuela, a move criticized by Venezuelan Vice President Delcy Rodriguez as "damaging and inexplicable."
Chevron exports around 240,000 barrels per day (bpd) of crude from its operations in Venezuela, accounting for over a quarter of the country’s total Oil production. With the license revoked, Chevron will no longer be permitted to export Venezuelan crude.
However, crude Oil prices faced headwinds amid rising concerns over global economic growth, with fears that tariffs imposed by US President Donald Trump on China and other trading partners could weaken demand. On Wednesday, President Trump reaffirmed his plan to enforce 25% tariffs on Canada and Mexico and announced intentions to add the EU to the list of nations facing trade penalties for exports to the US.
Oil prices also face pressure from expectations of increased global supply. Hopes for a Russia-Ukraine peace deal have weighed on prices, as the easing of Russian sanctions could boost oil output. In a related development, the US and Ukraine reportedly agreed on a draft minerals deal seen as crucial for securing Washington’s support, with President Trump aiming to swiftly resolve the conflict with Russia.
In Iraq, the Kurdistan regional government has reached an agreement with the federal oil ministry to resume Kurdish crude exports, though the restart awaits Turkey’s approval. The pipeline has been shut since March 2023 following an International Chamber of Commerce (ICC) ruling ordering Turkey to pay Baghdad $1.5 billion in damages for unauthorized exports between 2014 and 2018.
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