Oil prices rose on Thursday, February 27, amid concerns over supply after U.S. President Donald Trump revoked Chevron's (CVX.N) license to operate in Venezuela.
As reported by Ukrinform, Reuters reports this.
Brent crude rose 24 cents, or 0.33 percent, to $72.77 a barrel. U.S. West Texas Intermediate crude futures rose 18 cents, or 0.26 percent, to $68.80 a barrel.
A day earlier, the contracts settled at their lowest since Dec. 10, on an unexpected increase in U.S. fuel stockpiles that pointed to weakening demand and hopes for a possible peace deal between Ukraine and Russia. Both benchmarks have lost about 5% this month.
Trump said Wednesday he was revoking the license granted to Chevron to operate in Venezuela by his predecessor, Joe Biden, more than two years ago.
Chevron exports about 240,000 barrels of crude oil a day from its Venezuela operations, accounting for more than a quarter of the country's total oil production. The suspension of the license means Chevron will no longer be able to export Venezuelan oil.
“The news on Venezuela has caused a rift after the recent sell-off amid Russia-Ukraine ceasefire talks,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
“Potential buying from the US Strategic Petroleum Reserve also supported the market as WTI traded near its lowest level in more than two months,” he said.
Last week, Trump said his administration would quickly fill the SPR. He criticized Biden for using the SPR to lower gas prices.
Market participants remain focused on Trump's Russia-Ukraine peace talks. Trump said Volodymyr Zelensky would visit Washington on Friday to sign a rare earths deal, while the Ukrainian leader said the success of the deal would depend on those talks and an extension of U.S. aid.
U.S. crude oil inventories unexpectedly fell last week as refining activity increased and gasoline and distillate stockpiles rose, the Energy Information Administration said Wednesday.
“As this is a seasonal off-peak period when demand shifts from kerosene to gasoline, the sell-off caused by rising inventories has likely ended,” said NS Trading's Kikukawa.
In addition, Goldman Sachs noted in a note on Wednesday that the U.S. administration's dual goals of commodity dominance and availability are strengthening Brent's base range of $70-$85, a range that supports robust U.S. supply growth.