Brent crude oil futures climbed above $73 per barrel on Wednesday, driven by concerns over supply disruptions and a sharper-than-expected decline in US crude inventories. According to the American Petroleum Institute (API), US crude stockpiles fell by 4.6 million barrels last week, exceeding market expectations of a 2.5 million-barrel drop, adding to the upward pressure on prices.
In addition to inventory declines, new US trade measures are impacting global oil flows. President Donald Trump signed an order imposing 25% tariffs on imports from countries that purchase Venezuelan oil, a move that could disrupt key refining markets, particularly in China, India, and Spain. Meanwhile, the administration extended Chevron’s deadline to exit Venezuela until May 27, with analysts warning that its eventual departure could reduce production by 200,000 barrels per day.
However, oil’s rally was tempered by diplomatic efforts to stabilize energy markets. The US brokered agreements with Ukraine and Russia to halt attacks on energy infrastructure and maritime routes. As part of the deal, Washington agreed to push for limited sanctions relief on Moscow, potentially paving the way for increased Russian oil exports. These developments add complexity to the global oil market, balancing supply constraints with geopolitical shifts.
