Oil Holds Gains as Trump Vows Tariff on Venezuelan Crude Buyers
Oil held gains after US President Donald Trump threatened to punish any nation purchasing crude from Venezuela with a 25% tariff, raising the risk of supply disruptions.
Brent was steady near $73 a barrel after closing 1.2% higher on Monday, while West Texas Intermediate was above $69 following a four-day gain. Trump issued an order targeting the South American nation’s oil and gas, which could crimp flows to refiners in China, India, Spain and the US.
Venezuela’s output averaged 875,000 barrels a day in 2024, or about 0.9% of total global oil production. The country primarily produces heavy, sour crude, which is used to make products such as diesel and fuel oil.
Trump’s trade policies and retaliatory measures have led to increased volatility across global markets, with benchmark oil futures down more than 10% since hitting this year’s peak in mid-January. The Venezuela tariff would coincide with other so-called reciprocal levies by the US.
China officially resumed imports from Venezuela in February 2024 after US sanctions were eased, making some purchases for the first time since late 2019. Unofficially, the world’s top crude importer has been frequently taking the nation’s oil for years, according to traders and third-party data providers, which has often been masked as bitumen mix.
Prices:
Brent for May settlement was little changed at $73.05 a barrel at 8:50 a.m. in Singapore.
WTI for May delivery was steady at $69.13 a barrel.
Source : Bloomberg
