Oil prices rose slightly as former President Trump canceled Chevron’s Venezuela license, impacting oil exports and stoking market speculation. A surprise inventory build in the U.S. previously indicated weakening demand. Analysts believe the sell-off may have peaked while geopolitical negotiations involving Ukraine and Russia are watched closely.

Brent crude oil futures increased by 24 cents, or 0.33%, reaching $72.77 a barrel by 0328 GMT, while U.S. West Texas Intermediate crude futures rose by 18 cents, or 0.26%, to $68.80 per barrel. The previous day, these contracts closed at their lowest levels since December 10 due to a surprise increase in U.S. fuel inventories, indicating weakening demand and speculations regarding a potential peace deal between Russia and Ukraine. Both benchmarks have experienced a decline of approximately 5% this month.

Former President Trump announced a reversal of a license that allowed Chevron to operate in Venezuela, which had been granted by Joe Biden over two years ago. Under this license, Chevron exported around 240,000 barrels per day, constituting over a quarter of Venezuela’s total oil production. The cancellation means Chevron can no longer export crude oil from Venezuela.

In summary, the recent increase in oil prices is linked to Trump’s decision to revoke Chevron’s operating license in Venezuela, impacting oil exports significantly. U.S. fuel inventory fluctuations and ongoing geopolitical developments related to Russia and Ukraine continue to influence market volatility. Moreover, speculation around potential U.S. Strategic Petroleum Reserve purchases may provide market support amidst these changes.

Original Source: m.economictimes.com