Oil Rises as Trump Seeks to Tighten Squeeze on Venezuela
Oil climbed after US President Donald Trump threatened to punish nations buying Venezuelan crude, raising concerns of near-term supply tightness.
West Texas Intermediate rose 1.2% to settle above $69 a barrel for the first time since February. WTI advanced as much as 1.5% earlier in the session after Trump said Monday he will hit any nation purchasing oil and natural gas from Venezuela with 25% tariffs, citing migration and criminal gangs in the US.
The levies would impact major economies from China and India to Western Europe and may complicate business for US Gulf Coast refiners that rely on Venezuela’s heavy crude to feed production lines. Prices for heavy grades strengthened in recent days amid record low inventories as Canadian oil-sands producers enter maintenance season and curtail some output.
WTI eased off of session highs after the US treasury extended Chevron Corp.’s deadline to wind down operations in the Latin American nation to May 27. Venezuela produced about 875,000 barrels a day in 2024, according to OPEC data, or about 0.9% of total global oil production.
Meanwhile, Ukraine’s defense minister said talks with US officials on Sunday about ending Russia’s invasion “addressed key points including energy,” as Trump pushes for a ceasefire. Delegates from the US and Russia are also holding separate talks on Monday.
WTI for May delivery rose 1.2% to settle at $69.11 a barrel in New York. Brent for May settlement edged up 1.2% to settle at $73.00.
Source: Bloomberg
