Economy Update – Baghdad
Oil prices experienced a modest uptick today, rebounding from their lowest levels of the past two months following an announcement from US President Donald Trump regarding the cancellation of Chevron’s operations in Venezuela, a decision expected to impact crude oil supply.
Brent crude futures increased by 19 cents, or 0.3 percent, reaching $72.72 per barrel as of 01:54 GMT.
Meanwhile, US West Texas Intermediate crude futures rose by 16 cents, or 0.2 percent, to settle at $68.78 per barrel.
Both benchmarks had settled at their lowest values since December 10, attributed to an unexpected surge in fuel inventories in the United States, which indicated weaker demand, alongside optimism surrounding potential peace negotiations between Russia and Ukraine.
President Trump announced the cancellation of a license previously granted by his predecessor, Joe Biden, to Chevron, allowing the company to operate in Venezuela over two years ago.
Chemron, which has been exporting approximately 240,000 barrels per day from its Venezuelan operations—accounting for over a quarter of the nation’s total oil output—will now be prohibited from exporting Venezuelan crude following the revocation of its license.
Market observers are closely monitoring the ongoing peace talks between Russia and Ukraine, as President Trump noted that Ukrainian President Volodymyr Zelensky is scheduled to visit Washington on Friday to finalize an agreement regarding rare minerals. The success of this agreement, however, depends significantly on the ongoing negotiations and the continuance of American support.
According to the US Energy Information Administration, crude oil stocks in the United States unexpectedly decreased in the past week amid rising refining activities, while stocks of gasoline and distilled fuel witnessed unexpected increases.
For further updates, subscribe to our channel.
