Oil prices climbed more than 1% on Wednesday as OPEC+ decided to maintain its current production policy and the U.S. government barred Chevron from exporting Venezuelan crude.
Brent crude futures rose 91 cents, or 1.42%, to $65 a barrel by 1:48 p.m. EDT (1748 GMT), while U.S. West Texas Intermediate (WTI) crude increased $1.08, or 1.77%, to $61.97.
OPEC+, the alliance of the Organization of the Petroleum Exporting Countries and its allies, kept its output targets unchanged during a meeting that also introduced a new mechanism for setting production baselines for 2027. An additional meeting scheduled for Saturday will involve eight key members of the group, which may decide whether to raise output in July.
Market participants had anticipated a production increase ahead of the weekend meeting. However, most member countries currently lack the spare capacity to significantly adjust output, limiting the group’s flexibility in managing short-term supply.
The upcoming summer driving season is expected to boost demand, and production from non-OPEC+ sources has remained flat in the first half of the year. Potential disruptions, such as wildfires in Canada, could also affect overall supply.
In a separate development, Chevron ended several contracts related to oil production and services in Venezuela but plans to maintain its local workforce. The U.S. government has barred the company from exporting Venezuelan crude under a new license, tightening supply from that source.
Oil prices also gained earlier in the week on similar supply concerns. Market sentiment remains sensitive to geopolitical developments, including ongoing U.S.–Iran discussions. Iran’s nuclear chief said Wednesday that Tehran may permit U.S. inspectors to visit its nuclear sites if negotiations with Washington are successful.
U.S. oil inventory data is expected later in the week from the American Petroleum Institute and the Energy Information Administration. Early estimates suggest a modest build in crude inventories of around 100,000 barrels last week.
