Oil prices rise 0.65% after America banned Chevron from exporting Venezuela crude
Oil prices rose today, Wednesday, after America prevented Chevron from exporting crude from Venezuela under a new license, which increases the probability of shrinking the supply.
Brent crude futures rose 0.65% to $ 64.50 a barrel by 03:00 GMT, and Texas crude also increased 0.65% to $ 61.30 a barrel.
Sources mentioned yesterday, Tuesday, that the American administration issued a new license for Chevron allowing it to keep its assets in Venezuela, but not to export oil or expand its activities.
The head of the Westpack Commodity and Carbon strategy, Robert Rene, said, “The loss of Venezuelan Chevron in the United States will leave a shortage of refineries and thus rely more on the Middle East crude,” and Trump canceled the previous license on February 26.
Venezuelan oil production has increased slightly in the past few years to one million barrels per day, thanks to the licenses granted to Chevron and other foreign companies.
Today’s gains compensated most of the losses yesterday, when prices fell 1% upon settlement after indications of limited progress in the fifth round of Iranian -American nuclear talks, and the market expects that any solution between the two countries may add more Iranian oil supplies to the market.
A full meeting of the Organization of Petroleum Exporting Countries (OPEC) and its allies is scheduled for the name OPEC+, but it is not expected that any changes in politics will occur, and sources said that production may be decided to raise the month of July on Saturday when 8 members of the group hold talks.
