By Oil prices bounced back from recent lows on Tuesday after U.S. President Donald Trump revoked Chevron’s license to operate in Venezuela, reigniting fears of a global oil supply shortage. The decision, which targets Venezuela’s oil sector, has added another layer of uncertainty to an already volatile energy market.
Brent crude futures rose by 1.4% to 78.40 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 1.2% to 73.70 per barrel. Analysts warn that the move could further strain global oil supplies, particularly as Venezuela’s production has already been hampered by years of economic turmoil and U.S. sanctions.
The revocation of Chevron’s license is seen as a political maneuver to pressure Venezuela’s government, which has faced international criticism for its authoritarian practices. However, the decision has also raised concerns about the potential for higher oil prices, which could exacerbate inflationary pressures worldwide.
Market participants are now closely watching OPEC+’s next steps, as the group may need to adjust its production strategy to address the emerging supply gap.