Oil prices declined for a third consecutive session as investors worried about OPEC+’s decision to proceed with a planned increase in oil production, boosting output by 138,000 barrels per day in April, marking the group’s first production rise since 2022 and sparking fears of oversupply. Adding to the downward pressure were fresh US tariffs, including a 25% duty on imports from Canada and Mexico, along with an elevated tariff rate of 20% on certain Chinese products, which triggered immediate retaliatory measures from these countries. This escalation has heightened worries about potential economic growth slowdowns and their subsequent effects on energy demand. West Texas Intermediate (WTI) for settlements in April tumbled by 1.09% at 5:43 am ET, selling for $67.12 per barrel. Brent for May’s deliveries dropped by 1.24% to sell for $70.14 per barrel a minute later.
Trump gives Chevron 30 days to stop pumping oil in Venezuela
The Trump administration on Tuesday gave Chevron 30 days to stop oil production in Venezuela after Washington accused President Nicolas Maduro of not making progress on electoral reforms and migrant returns. President Trump reversed a Biden-era license that allowed the oil giant to operate in Venezuela despite US sanctions – a U-turn from January when the White House appeared to be making progress with Maduro. The Treasury Department gave the US-based oil giant an April 3 deadline to pull up stakes, much quicker than the usual six-month wind-down period. In a statement, Chevron said its business in Venezuela complies with all laws and regulations, including the United States’ sanctions imposed during Trump’s first term. “We are aware of the President’s directive and will abide by any direction given by the US Treasury Department to implement that directive,” a Chevron spokesperson told The Post.
The hard stop to Chevron’s oil production in Venezuela could eventually remove up to 200,000 barrels a day from the global market, according to Bloomberg.
It’s unlikely to have an immediate impact on prices, especially since OPEC decided this week to boost production – planning to increase output by 138,000 barrels per day in April. But Chevron’s exit could shrink Venezuela’s economy by as much as 7.5% this year, according to the Finance Observatory, an opposition-run research group. Republican lawmakers have slammed the Biden administration’s waiver, claiming Chevron has become the backbone of the Maduro-controlled country’s economy.
NN: Chevron =OPEC+
high frequency traders don’t want you to know
Oil prices have bottomed. Trump just sanctioned oil from Venezuela and Iran. Americas two biggest trade partners Mexico and Canada threaten to put tariffs on oil imports into he US . Big oil rally coming