West Texas Intermediate (WTI), the US crude oil benchmark, traded at around $69.00 during the early Asian session on Tuesday, climbing to a three-week high. The price surge came after US President Donald Trump announced plans to impose tariffs on countries that purchase oil and gas from Venezuela.
Late on Monday, Trump stated that a 25% tariff would be applied to all imports from any nation buying oil or gas from Venezuela, effective April 2. The US will also impose new tariffs on Venezuela itself.
Additionally, the US Treasury Department extended Chevron Corp.’s agreement to produce and export Venezuelan oil until May 27. This general license provides an exemption from economic sanctions, allowing the company to continue its operations in the country.
Rising geopolitical tensions in the Middle East also provided support to WTI prices, as concerns about potential disruptions to crude supplies from the region grow. Israel has resumed airstrikes on Gaza, ending a nearly two-month ceasefire with Hamas. Israeli Prime Minister Benjamin Netanyahu pledged to increase military operations to free hostages and disarm Hamas.
However, optimism surrounding ongoing Russia-Ukraine peace talks could weigh on oil prices. US and Russian officials met in Saudi Arabia on Monday to discuss a broad ceasefire in Ukraine, while Washington is also pursuing a separate ceasefire agreement for the Black Sea region.
