HOUSTON: Oil prices gained one per cent on Monday as US President Donald Trump said he will impose a 25pc tariff on countries that buy oil and gas from Venezuela.
Price gains were capped, however, as the US gave oil producer Chevron until May 27 to wind down its oil operations and exports from Venezuela. Trump had initially given Chevron 30 days from March 4 to wind down that licence.
The two moves taken together alleviate some pressure on Chevron while putting more pressure on other consumers of Venezuelan oil, though it is uncertain how the Trump administration will enforce the tariff.
Brent crude futures rose 67 cents, or 1pc, to $72.83 a barrel by 1:50 p.m. ET (1750 GMT). US West Texas Intermediate crude was up 66 cents, or 0.95pc, at $68.93.
Also keeping a ceiling on prices, Opec+’ will likely proceed with a planned May oil output hike, sources said, while talks continued to end the war in Ukraine, which could increase supply of Russian crude to global markets.
“We’ve got a little bit of a supply shock of Venezuela losing barrels to the world market. So that’s definitely a bullish force,” said Dennis Kissler, senior vice president of trading at BOK Financial, adding that investors were watching for tighter restrictions on Iran as well.
Both benchmarks settled higher on Friday and recorded a second consecutive weekly gain. Wall Street also surged on Monday after signs the Trump administration is taking a measured approach on tariffs against its trading partners.
Trump signalled on Friday that there will be flexibility on tariffs and that his top trade chief plans to speak with his Chinese counterpart.
Published in Dawn, March 25th, 2025