Oil Prices Rise amid Fears of Declining Supplies

Oil prices rose on Wednesday, driven by fears of supply shortages after US President Donald Trump threatened to impose tariffs on countries importing oil and gas from Venezuela, along with a larger-than-expected drop in US crude inventories.

Brent crude futures rose 15 cents, or 0.21%, to $73.17 a barrel, while US West Texas Intermediate (WTI) crude futures rose 16 cents, or 0.23%, to $69.16 a barrel.

Latest Oil Prices

WTI Crude • 69.65 +0.65 +0.94%

Brent Crude • 74.06 +1.04 +1.42%

Murban Crude • 75.07 +0.52 +0.70%

Natural Gas • 3.861 +0.021 +0.55%

Louisiana Light • 71.23 -0.28 -0.39%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 75.74 +0.63 +0.84%

Mars US • 72.90 -1.12 -1.51%

Gasoline • 2.233 +0.024 +1.09%

Trump signed an executive order on Monday authorizing his administration to impose a 25% tariff on imports from any country that buys crude oil or liquid fuels from Venezuela, a major export for which oil is a major commodity. China, already subject to US tariffs, is the largest buyer of Venezuelan oil.

In a related move, the Trump administration extended the deadline for US oil giant Chevron to end its operations in Venezuela to May 27. Analysts at ANZ warned that the withdrawal of the company's operating license could reduce Venezuelan production by about 200,000 barrels per day, according to Reuters.

While supporting the price rally, preliminary data from the American Petroleum Institute showed that US crude inventories fell by 4.6 million barrels during the week ending March 21, exceeding expectations for a decline of only 1 million barrels. The US government is scheduled to release official inventory data later on Wednesday.

However, some geopolitical developments limited oil gains. The United States announced agreements with Ukraine and Russia to halt attacks at sea and on energy facilities, with Washington pledging to push for the lifting of some sanctions on Moscow. While both Kiev and Moscow emphasized their reliance on Washington to implement the agreement, each side expressed skepticism about the other's commitment.