Thursday twenty seventh February, 2025 05:52 PM|
Oil costs rose greater than 1% on Thursday, February 27, 2025, as provide issues resurfaced after U.S. President Donald Trump’s revoked a licence granted to U.S. oil main Chevron, opens new tab to function in Venezuela.
Gains had been capped, nonetheless, by indicators of a possible peace deal in Ukraine, which may lead to larger Russian oil flows, and an surprising rise in U.S. gasoline and distillate shares.
Brent crude oil futures had been up 86 cents, or 1.19%, at $73.39 a barrel by 1240 GMT. U.S. West Texas Intermediate crude oil futures rose 78 cents, or 1.14%, to $69.40.
The contracts had settled within the earlier session at their lowest since December 10.
“Prices are stabilising this morning around their two-month lows after Trump reversed Chevron’s licence to export Venezuelan oil,” mentioned PVM analyst Tamas Varga.
The Chevron licence information means the corporate will not be capable to export Venezuelan crude. And if Venezuelan state oil firm PDVSA exports oil beforehand exported by Chevron, U.S. refineries can be unable to purchase it due to U.S. sanctions.
“Chevron’s exit could reduce Venezuela (oil) production, giving OPEC+ capacity to increase output. If this occurs, coastal U.S. refiners could incur higher procurement costs,” TD Cowen analysts mentioned in a word.
If OPEC+ doesn’t enhance provide, it may enhance heavy bitter costs, which might hit U.S. refiners, the analysts mentioned.
Chevron exports about 240,000 barrels per day (bpd) of crude from its Venezuela operations, greater than 1 / 4 of the nation’s total oil output.
Trump’s involvement in efforts to facilitate a Russia-Ukraine peace deal are additionally in focus.
Trump mentioned Ukrainian President Volodymyr Zelenskiy would go to Washington on Friday to signal an settlement on uncommon earth minerals, although the Ukrainian chief mentioned the success of talks would hinge on continued U.S. assist.
“Markets like clarity as opposed to uncertainty. Unless a clear path is presented on tariffs and Eastern European peace, oil prices will remain on the defensive with sporadic and spontaneous headline-based rallies,” mentioned Varga.
U.S. crude oil stockpiles fell unexpectedly final week as refining exercise ticked larger, whereas gasoline and distillate inventories registered stunning positive aspects, the Energy Information Administration mentioned on Wednesday.