Published by Global Banking & Finance Review®
Posted on February 27, 2025
3 min readLast updated: January 25, 2026
Add as preferred source on GoogleOil prices rose over 2% after Trump revoked Chevron's Venezuela license, affecting global supply. Investors watch OPEC+ decisions and geopolitical tensions.
By Stephanie Kelly
NEW YORK (Reuters) -Oil prices rose more than 2% on Thursday as supply concerns resurfaced after U.S. President Donald Trump revoked a licence granted to U.S. oil major Chevron to operate in Venezuela.
However, investors were still keeping an eye on signs of a potential peace deal in Ukraine, which could result in higher Russian oil flows.
Brent crude oil futures were up $1.53, or 2.1%, at $74.06 a barrel by 1:28 p.m. EST (1828 GMT). U.S. West Texas Intermediate crude oil futures rose $1.64, or 2.4%, to $70.26.
The contracts had settled in the previous session at their lowest levels since December 10.
"Markets like clarity as opposed to uncertainty. Unless a clear path is presented on tariffs and Eastern European peace, oil prices will remain on the defensive with sporadic and spontaneous headline-based rallies," said Tamas Varga, an analyst at PVM.
The Chevron licence revocation means the company will no longer be able to export Venezuelan crude. And if Venezuelan state oil company PDVSA exports oil previously exported by Chevron, U.S. refineries will be unable to buy it because of U.S. sanctions.
The move also could lead to the negotiation of a fresh agreement between the U.S. producer and state company PDVSA to export crude to destinations other than the U.S., sources close to the talks told Reuters
Chevron exports about 240,000 barrels per day (bpd) of crude from its Venezuela operations, more than a quarter of the country's entire oil output.
"Chevron's exit could reduce Venezuela (oil) production, giving OPEC+ capacity to increase output. If this occurs, coastal U.S. refiners could incur higher procurement costs," TD Cowen analysts said in a note.
If OPEC+ does not increase supply, it could increase heavy sour prices, which would hit U.S. refiners, the analysts said.
Oil prices rose during intraday trading after Reuters reported that OPEC+ is debating whether to raise oil output in April as planned or freeze it as its members struggle to read the global supply picture because of fresh U.S. sanctions on Venezuela, Iran and Russia, eight OPEC+ sources said.
Also in focus is Trump's involvement in efforts to facilitate a Russia-Ukraine peace deal.
Trump said Ukrainian President Volodymyr Zelenskiy would visit Washington on Friday to sign an agreement on rare earth minerals, though the Ukrainian leader said the success of talks would hinge on continued U.S. aid.
U.S. economic growth slowed in the fourth quarter, the government confirmed on Thursday, and the loss of momentum appears to have persisted early this quarter amid cold weather and concerns that tariffs will hurt spending through higher prices.
Meanwhile, the number of Americans filing new applications for unemployment benefits increased more than expected last week. A separate unemployment program, reported with a one-week lag, showed no impact yet of the recent mass layoffs of probationary federal government workers.
(Reporting by Stephanie Kelly in New York, Yuka Obayashi in Tokyo, Siyi Liu in Singapore and Arunima Kumar; Editing by David Goodman, Louise Heavens, Chizu Nomiyama and Paul Simao)
Oil prices rose more than 2% after U.S. President Donald Trump revoked Chevron's license to operate in Venezuela, raising supply concerns.
Chevron exports about 240,000 barrels per day from its Venezuela operations, which is more than a quarter of the country's total oil output.
Chevron's exit could reduce Venezuela's oil production, potentially leading to higher procurement costs for U.S. refiners if OPEC+ decides to increase output.
Investors are also monitoring the potential for a peace deal in Ukraine, which could affect Russian oil flows and overall market dynamics.
Trump stated that Ukrainian President Volodymyr Zelenskiy would visit Washington to sign an agreement on rare earth minerals, indicating ongoing diplomatic efforts.
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