FX.co ★ Oil Rises on Supply Concerns

On Wednesday, WTI crude oil futures exceeded $69 per barrel, driven by concerns over supply and a greater-than-anticipated decline in US crude inventories. Earlier in the week, former President Trump authorized 25% tariffs on imports from nations purchasing Venezuelan oil, potentially disrupting supplies to major refiners, notably in China, India, and Spain. The Trump administration also extended Chevron's deadline to exit Venezuela to May 27, with analysts predicting that its departure could reduce production by 200,000 barrels per day. Concurrently, data from the American Petroleum Institute indicated that US crude oil inventories decreased by 4.6 million barrels in the past week, surpassing market predictions of a 2.5 million-barrel drop. Nonetheless, gains in oil prices were restrained as the US facilitated agreements with Ukraine and Russia to cease sea and energy assaults, agreeing to pursue some sanctions relief on Moscow—a development that might enable Russian oil to re-enter global markets.