Oil prices diverged on Tuesday as a truce between Russia and Ukraine on maritime and energy targets offset concerns over potential U.S. tariffs on countries importing Venezuelan oil. Brent crude settled slightly higher by 2 cents at $73.02, while WTI declined 11 cents to $69.
The U.S. brokered agreements with Russia and Ukraine to halt attacks on energy infrastructure and shipping, with Washington agreeing to push for sanctions relief on Moscow. However, both Kyiv and Moscow expressed skepticism about compliance.
Analysts suggest that a ceasefire could lead to a reduction in Russian oil sanctions. Meanwhile, Trump’s proposed tariffs on Venezuelan oil exports remain a concern, as they could disrupt supply and impact China’s independent “teapot” refineries, which heavily rely on Venezuelan crude.
The U.S. also extended Chevron’s deadline to wind down its Venezuelan operations until May 27. Analysts estimate that a full withdrawal could reduce Venezuela’s production by 200,000 barrels per day.
OPEC+ is expected to proceed with its planned May production increase, sources told Reuters, while some members may face pressure to cut output further due to previous overproduction. Commodity trading executives anticipate a well-supplied oil market in 2025, though concerns about global demand growth persist.