Oil prices rebounded over 2% on Thursday as supply concerns emerged following President Trump’s revocation of Chevron’s license to operate in Venezuela. Brent rose to $74.04 (+2.1%), while WTI climbed to $70.35 (+2.5%), recovering from their lowest settlements since December 10.
The Chevron decision prevents the company from exporting Venezuelan crude, potentially tightening supply. If Venezuela’s state oil company PDVSA takes over Chevron’s exports, U.S. refiners will be unable to purchase due to sanctions. Chevron’s operations account for over 240,000 barrels per day, more than a quarter of Venezuela’s output. Analysts noted this could push OPEC+ to increase production or, if left unchanged, raise prices for heavier crude grades, impacting U.S. refiners.
OPEC+ is reportedly debating whether to proceed with an April production hike or freeze output due to uncertainty over the impact of fresh U.S. sanctions on Venezuela, Iran, and Russia. Meanwhile, Trump remains engaged in brokering a Russia-Ukraine peace deal, with Ukraine’s Zelenskiy set to visit Washington for talks on rare earth minerals, though aid commitments remain a key issue.
Economic data added to market concerns, with U.S. GDP growth slowing in Q4 and jobless claims rising more than expected, stoking fears that tariffs could further weaken consumer spending. Despite these pressures, oil prices climbed on speculation of tighter supply and uncertainty over geopolitical developments.