Oil prices edged higher on Thursday before paring gains in the afternoon after news broke that the Trump administration may permit Chevron to resume operations in Venezuela. Brent crude settled up 26 cents at $68.77 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed 44 cents to $65.69. Earlier in the day, both benchmarks had gained more than a dollar, buoyed by supply disruptions and bullish inventory data.
The sudden reversal in price momentum came after a Reuters report indicated Washington might ease sanctions specifically for Chevron in Venezuela. “The news about Chevron being able to go back into Venezuela and get oil going again just took the knees out of the market,” said John Kilduff of Again Capital. However, he emphasized this was likely a “one-off” exception and not a broader opening for U.S. oil firms.
Earlier, prices had rallied on reports that Russia was preparing to curb gasoline exports, except to a few allies such as Mongolia. This fueled concerns about tighter refined product supplies globally. “Russia looking to cut off gasoline exports gave the market a boost,” noted Phil Flynn of Price Futures Group.
Also supporting early gains was the EIA’s report showing a 3.2 million barrel draw in U.S. crude inventories last week—double analysts’ expectations—signaling firm demand. Market sentiment was further buoyed by optimism over potential progress in U.S.-EU trade talks, with diplomats indicating that a 15% baseline tariff could replace a harsher 30% proposal.
Additional supply-side jitters came from the temporary suspension of Azeri crude exports from the Turkish port of Ceyhan and a brief halt at Russia’s Black Sea ports. BP confirmed chlorides had been found in some tanks at Ceyhan, though loadings continued from tanks within normal specs. The combined flow from Ceyhan and Novorossiysk represents about 2.5% of global oil supply, so any disruptions are closely watched.