Oil prices rose on Thursday as concerns about supply emerged after President Trump’s revocation of Chevron’s license in Venezuela. However, the gains were muted by potential peace talks in Ukraine and an unexpected rise in U.S. gasoline and distillate stocks, with Brent crude at $73.24 and WTI at $69.26. Analyst Tamas Varga noted that markets favor clarity over uncertainty.
On Thursday, oil prices experienced an uptick as supply concerns emerged following U.S. President Donald Trump’s decision to revoke Chevron’s license to operate in Venezuela. The Brent crude oil futures climbed 71 cents, or 0.98 percent, reaching $73.24 per barrel, while U.S. West Texas Intermediate crude futures rose by 64 cents, or 0.93 percent, to $69.26. Notably, both benchmarks had settled at their lowest levels since December 10 and have fallen approximately 4.5 percent during the month.
PVM analyst Tamas Varga noted, “Prices are stabilizing this morning around their two-month lows after Trump reversed Chevron’s licence to export Venezuelan oil.” Furthermore, the ongoing developments regarding a potential peace agreement in Ukraine are influencing market perception. President Trump indicated that Ukrainian President Volodymyr Zelenskiy would visit Washington to sign an agreement concerning rare earth minerals, emphasizing that the success of negotiations would depend on the continuation of U.S. assistance.
Varga expressed concern over market dynamics, stating, “Markets like clarity as opposed to uncertainty. Unless a clear path is presented on tariffs and Eastern European peace, oil prices will remain on the defensive with sporadic and spontaneous headline-based rallies.” The Energy Information Administration reported an unexpected decline in U.S. crude oil stockpiles last week amid heightened refining activity, although gasoline and distillate inventories showed surprising increases.
In summary, oil prices have rebounded due to supply concerns following the cancellation of Chevron’s Venezuela operating license, while broader market influences include developments surrounding a potential peace deal in Ukraine. The interplay of these factors, alongside inventory reports, will likely continue to shape oil market dynamics in the near term.
Original Source: www.channelnewsasia.com
