Oil edges higher on tighter supply concerns
Oil prices climbed on Wednesday in early Asia trade on concerns of tighter supplies after U.S. President Donald Trump threatened tariffs against countries importing oil and gas from Venezuela and after U.S. crude inventories fell more than expected.
Brent crude futures gained 25 cents, or 0.3%, to $73.27 a barrel by 1214 GMT, while U.S. West Texas Intermediate crude futures rose 28 cents, or 0.4%, to $69.28 a barrel.
On Monday Trump signed an executive order authorizing his administration to impose blanket 25% tariffs under the 1977 International Emergency Economic Powers Act on imports from any country that buys Venezuelan crude oil and liquid fuels.
Oil is Venezuela’s main export. China, already a target of U.S. import tariffs, is its largest buyer.
The Trump administration also on Monday extended a deadline to May 27 for U.S. producer Chevron to wind down operations in Venezuela.
The withdrawal of Chevron’s licence to operate could reduce production in the country by about 200,000 barrels per day, according to ANZ analysts.
Also supporting prices, industry data showed U.S. crude inventories fell by 4.6 million barrels in the week ended March 21, market sources said citing American Petroleum Institute figures. Analysts polled by Reuters were expecting a decline of 1 million barrels.
Official U.S. government data on crude inventories is due on Wednesday.
Limiting oil price gains, the United States reached deals with Ukraine and Russia to pause attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow.
Kyiv and Moscow both said they would rely on Washington to enforce the deals, while expressing scepticism that the other side would abide by them.
Source : Reuters
