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Sophia Klein
Oil Prices Rise Following Cancellation of Chevron’s License in Venezuela
Oil prices rose after President Trump canceled Chevron’s Venezuela license, heightening supply concerns. Brent crude increased by 0.98% to $73.24, while WTI rose by 0.93% to $69.26. However, unexpected rises in U.S. gasoline stocks and potential peace talks in Ukraine capped gains. Analyst Tamas Varga noted prices are stabilizing despite geopolitical uncertainties.
Oil prices experienced a rebound on Thursday following the announcement by U.S. President Donald Trump, who revoked Chevron’s license to operate in Venezuela. This development raised supply concerns in the global oil market. However, these gains were moderated by an unexpected rise in U.S. gasoline and distillate stocks and the potential for a peace agreement in Ukraine, which could allow for increased oil flows from Russia.
At 1049 GMT, Brent crude futures rose by 71 cents, or 0.98 percent, reaching $73.24 per barrel. Concurrently, U.S. West Texas Intermediate crude futures climbed 64 cents, or 0.93 percent, to $69.26. Despite these increases, both benchmarks had previously settled at their lowest rates since December 10 and have notably decreased approximately 4.5 percent in value throughout the month.
Analyst Tamas Varga from PVM commented, “Prices are stabilizing this morning around their two-month lows after Trump reversed Chevron’s license to export Venezuelan oil.” Additionally, Trump’s involvement in facilitating a peace agreement between Russia and Ukraine has garnered attention, especially with the upcoming visit of Ukrainian President Volodymyr Zelenskiy to Washington.
In summary, while oil prices saw an uptick following the cancellation of Chevron’s license, concerns about U.S. gasoline inventories and potential peacemaking in Ukraine tempered these gains. Continued uncertainties surrounding Eastern European stability and tariffs likely will maintain oil prices on a defensive trajectory. The market’s response remains closely tied to geopolitical developments and inventory reports.
Original Source: www.channelnewsasia.com
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