Oil prices surged on Thursday morning as concerns over supply disruptions, sparked by heightened U.S. sanctions on Iran and Venezuela, outweighed worries about demand and the potential for peace in Ukraine.
By 10:45 a.m. ET, U.S. benchmark WTI Crude had risen by more than 2%, trading at $70.09 per barrel, marking a 2.14% increase for the day. The international benchmark, Brent Crude, was up 1.94%, reaching $73.94.
After a decline earlier in the week, oil prices rebounded following U.S. President Donald Trump’s decision to cancel a sanction waiver for Chevron. This waiver had allowed the oil giant to operate in Venezuela, contributing to the country’s rising oil production.
Trump cited Venezuela’s lack of electoral reform and inadequate action on migration as reasons for ending the waiver.
Chevron had been exporting around 240,000 barrels of Venezuelan crude oil to the U.S. daily, which represented a quarter of Venezuela’s total oil production. This trade also provided significant revenue for the Venezuelan economy. According to ING’s commodity analysts, U.S. imports of Venezuelan crude oil averaged almost 270,000 barrels per day this year.
The renewed sanctions on Venezuela add to President Trump’s broader “maximum pressure” campaign against Iran, which escalated earlier this week with new sanctions targeting Iran’s shadow fleet.
“The United States will use all our available tools to target all aspects of Iran’s oil supply chain. Anyone dealing in Iranian oil risks facing significant sanctions,” said Treasury Secretary Scott Bessent on Monday.
Despite Thursday’s price increase, the oil market remains unstable, driven by short-term concerns over supply and demand. Traders are waiting for more clarity on issues like tariffs, sanctions, and the potential resolution of the war in Ukraine.
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