FX.co ★ Brent Hovers Near 3-Week High

Brent crude oil futures lingered near a three-week peak of $73 per barrel on Tuesday, driven by apprehensions about potential tightening in the global supply chain. These concerns arose after President Donald Trump indicated the possibility of imposing a 25% tariff on U.S. imports from nations that procure oil from Venezuela, a measure slated to take effect on April 2. Such a move could potentially disrupt crude supply to major refiners located in China, India, Spain, and the United States. Nevertheless, the upward pressure on oil prices may be mitigated by the Trump administration's decision to extend Chevron's deadline to scale down its oil operations and exports from Venezuela until May 27. Adding to the complex outlook are the ceasefire discussions between Ukraine and Russia, which could lead to an increase in Russian oil exports should a resolution be reached. Additionally, OPEC+'s potential production increment as early as April suggests an augmentation in supply. Investors are also keenly awaiting further details on Trump's proposed reciprocal tariffs expected next week, amidst prevailing uncertainty regarding the extent of the tariffs and the countries that will be affected.