Oil prices rose more than 1% on Wednesday as supply concerns mounted following an OPEC+ decision to maintain its current output policy and after the U.S. barred Chevron from exporting Venezuelan crude.
Brent crude settled at $64.90 a barrel, up 81 cents or 1.26%, while U.S. West Texas Intermediate (WTI) climbed 95 cents, or 1.56%, to $61.84.
Investors had expected OPEC+ to approve a production increase this week, but the group opted to hold steady. Instead, they agreed to create a new framework for determining output baselines for 2027. Analysts noted most member countries lack the capacity to alter production significantly, which may limit the group’s flexibility going forward.
A separate meeting of eight OPEC+ countries is scheduled for Saturday and could lead to a July output increase. Still, some analysts, including those at Goldman Sachs, expect production to remain flat after that, unless compliance weakens or demand unexpectedly surges.
Additional upward pressure came from the U.S. decision to revoke Chevron’s authorization to export Venezuelan crude, tightening near-term supply. Chevron has halted its oil operations in Venezuela but plans to retain local staff.
Broader supply concerns were also supported by expectations of stronger seasonal demand and the potential impact of Canadian wildfires on output. Meanwhile, Iran signaled possible cooperation with U.N. nuclear inspectors if talks with the U.S. progress—another variable in the geopolitical backdrop affecting oil markets.
Traders also awaited U.S. inventory data from the American Petroleum Institute and Energy Information Administration, with any signs of tightening stockpiles likely to reinforce the bullish sentiment.