Oil prices extended their rally for a fifth consecutive session on Tuesday amid expectations of tighter global supply following the U.S. decision to impose tariffs on countries purchasing Venezuelan crude.
However, gains remained limited as OPEC+ moved forward with its planned production increase in May.
Brent crude futures climbed 46 cents, or 0.6%, reaching $73.46 per barrel, while U.S. West Texas Intermediate crude rose by 46 cents, or 0.7%, to $69.57. Both benchmarks had gained over 1% in the previous session after the U.S. government announced a 25% tariff on nations importing oil and gas from Venezuela.
The South American country relies heavily on oil exports, with China as its largest buyer.
In addition to the tariff announcement, the U.S. government extended the deadline for Chevron to wind down its operations in Venezuela until May 27. The withdrawal of Chevron’s license could potentially reduce Venezuelan oil output by around 200,000 barrels per day.
Meanwhile, OPEC+ is set to proceed with its plan to increase oil production for a second straight month in May. The group, which includes OPEC members and allies such as Russia, is looking to enforce output reductions on certain producers to compensate for previous overproduction.
Elsewhere, the U.S. recently introduced fresh sanctions targeting Iranian oil exports. At the same time, trade tensions remained high as the U.S. administration reaffirmed plans to impose automobile tariffs, though it signaled some flexibility by suggesting not all levies would take effect on April 2.
Geopolitical concerns also influenced market sentiment. Russia expressed willingness to negotiate a new agreement on Black Sea shipping security, provided the U.S. ensured compliance from Ukraine. This issue was reportedly a key topic during recent discussions between American and Russian officials in Riyadh.
The Kremlin confirmed that both sides were analyzing the outcome of the talks, but further details were not disclosed.
