On Thursday, U.S. President Trump announced the revocation of Chevron's license to operate in Venezuela, a move that could exacerbate the tightening of oil supplies and lead to a rebound in global oil prices. As a result of this announcement, Brent crude futures rose by 0.3% to $72.72 per barrel, while U.S. WTI crude increased by 0.2% to $68.78 per barrel.
This change marks a further tightening of the Trump administration's policy towards Venezuela. Chevron's operations in Venezuela export approximately 240,000 barrels of crude oil per day, accounting for a quarter of the country's total oil production. The revocation of the license means Chevron will no longer be able to export Venezuelan crude, potentially leading to reduced oil supply in the market and pushing up prices.
Prior to this announcement, concerns about a slowdown in demand were intensified due to an unexpected increase in U.S. fuel inventories, causing Brent and WTI crude futures to hit their lowest point in two months on Wednesday. Additionally, investor expectations for a potential peace agreement between Russia and Ukraine also influenced market sentiment.
However, Trump's decision may alter the trend in oil prices in the short term, with investors closely monitoring the impact of this change on the global oil market.
