Oil prices rose more than 1% on Thursday after U.S. President Donald Trump revoked a licence allowing Chevron to operate in Venezuela, raising concerns over supply disruptions.
However, gains were limited by signs of potential progress in Ukraine-Russia peace talks and an unexpected increase in U.S. gasoline and distillate inventories.
Brent crude oil futures climbed 86 cents, or 1.19%, to $73.39 a barrel by 1240 GMT, while U.S. West Texas Intermediate (WTI) crude rose 78 cents, or 1.14%, to $69.40. Both contracts had settled at their lowest levels since December 10 in the previous session.
The decision to revoke Chevron’s license means the company can no longer export Venezuelan crude. If Venezuelan state oil company PDVSA takes over those exports, U.S. refineries will be unable to purchase the oil due to existing U.S. sanctions.
Chevron currently exports about 240,000 barrels per day (bpd) from Venezuela, accounting for more than a quarter of the country’s total oil production.
The supply impact depends on whether OPEC+ increases production to compensate for Venezuela’s reduced output. If no additional supply is introduced, heavy sour crude prices could rise, affecting U.S. refiners that rely on these imports.
Meanwhile, Trump’s involvement in discussions for a potential Russia-Ukraine peace deal remains a key focus. Ukrainian President Volodymyr Zelenskiy is set to visit Washington on Friday to sign an agreement on rare earth minerals, though he stated that the success of talks depends on continued U.S. aid.
In the U.S., crude oil stockpiles fell unexpectedly last week as refining activity increased, while gasoline and distillate inventories posted surprising gains, according to data from the Energy Information Administration.
