Oil Prices Experience Slight Uptick Amid U.S. Policy Changes
Market Overview
Oil prices showed a modest increase on Thursday, bouncing back from a two-month low. This uptick follows a significant announcement from U.S. President Donald Trump, who revealed the revocation of a license previously granted to Chevron (CVX.N) to operate in Venezuela. This development is poised to impact crude oil supplies.
By 01:54 GMT, Brent crude futures had risen by 19 cents, or 0.3%, settling at $72.72 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures saw an increase of 16 cents, or 0.2%, reaching $68.78 per barrel.
Market Context
The previous day’s trading had brought both benchmarks to their lowest levels since December 10, primarily due to an unexpected surge in U.S. fuel stocks, signaling weak demand and optimism surrounding potential peace negotiations between Russia and Ukraine.
President Trump stated that he had canceled the license granted to Chevron over two years ago by his predecessor, Joe Biden. Chevron’s operations in Venezuela are responsible for exporting approximately 240,000 barrels of crude oil per day, which constitutes more than 25% of the country’s total oil output. The license revocation means that Chevron will no longer be permitted to export Venezuelan crude oil.
Focus on Geopolitical Developments
Market participants are closely monitoring the ongoing peace discussions related to the Russia-Ukraine conflict. Trump announced that Ukrainian President Volodymyr Zelensky is scheduled to visit Washington on Friday to formalize an agreement concerning rare minerals. Zelensky has indicated that the success of this accord hinges on the outcomes of these negotiations, as well as the continuation of U.S. support.
U.S. Energy Data Insights
In a recent report, the U.S. Energy Information Administration noted an unexpected decline in crude oil inventories last week, driven by increased refining activities. However, both gasoline and distillate stocks experienced significant gains, underscoring the shifting dynamics within the energy sector.
