Minister of Energy and Infrastructure Explores Collaborative Opportunities with Bahrain’s Minister of Works

Oil prices experienced a modest increase on Thursday following a significant decision by U.S. President Donald Trump, who rescinded a key authorization permitting Chevron to continue its operations in Venezuela. This development has the potential to constrict global crude oil supply.

Brent crude futures saw a rise of $0.19, translating to a 0.3% increase, reaching $72.72 per barrel by 0154 GMT. Meanwhile, the U.S. West Texas Intermediate (WTI) crude also climbed by $0.16 or 0.2%, settling at $68.78 per barrel.

On Wednesday, both crude oil benchmarks closed at their lowest points since December 10, chiefly due to an unexpected increase in U.S. fuel stockpiles, indicating weakened demand, and growing optimism around possible peace negotiations between Russia and Ukraine.

Chevron Operational Decision by Trump On Wednesday, President Trump announced his decision to revoke a license previously issued by former President Joe Biden, which allowed Chevron to conduct operations in Venezuela. This action halts the company’s capacity to export 240,000 barrels of oil daily, accounting for over a quarter of Venezuela’s total oil production, potentially disrupting supply chains.

The news from Venezuela prompted some reversal of recent market sell-offs, especially amid ongoing discussions around a ceasefire between Russia and Ukraine, stated Hiroyuki Kikukawa, president of NS Trading, part of Nissan Securities.

Market Dynamics and Strategic Reserves Potential purchases for the U.S. Strategic Petroleum Reserve (SPR) continue to lend support to the market. President Trump has previously committed to rapidly replenishing these reserves. He criticized the earlier decision by President Biden to utilize the SPR as a means to lower gasoline prices.

Geopolitical Developments Investor attention remains fixed on the peace talks between Trump and Russian-Ukrainian delegates. The U.S. president confirmed that Ukrainian leader Volodymyr Zelenskiy is set to visit Washington on Friday to finalize an agreement on rare earth minerals. However, Zelenskiy stressed that the agreement’s success is dependent on continued U.S. assistance.

U.S. Inventory Reports and Market Prognosis Recent data revealed that U.S. crude oil stockpiles saw an unexpected decline last week, although gasoline and distillate inventories increased, reflecting seasonal demand changes. Kikukawa observed that the recent sell-off linked to rising fuel inventories may have reached its limit, as demand shifts from kerosene towards gasoline. Goldman Sachs has upheld its projected Brent crude price range of $70-85, emphasizing the U.S. administration’s drive for dominant and affordable commodity markets as crucial influences.