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Highlights

  • Brent and WTI crude prices rose nearly 0.8% after the U.S. restricted Chevron’s oil exports from Venezuela.

  • Traders expect tighter supply amid growing reliance on Middle Eastern crude.

  • EU trade positioning and ongoing Iran-U.S. nuclear talks add to global market dynamics.

Oil prices edged higher in early Wednesday trading as a new U.S. authorization barred Chevron Corp (NYSE:CVX) from exporting crude oil from Venezuela, fuelling concerns over tightening global supply.

Brent crude futures climbed 47 cents, or 0.73%, to $64.56 a barrel by 0028 GMT. U.S. West Texas Intermediate (WTI) crude futures followed suit, rising 49 cents, or approximately 0.8%, to $61.38 per barrel.

The uptick follows a Reuters report citing sources that the Trump administration has issued a revised authorization for Chevron. While the new license permits the U.S. oil major to retain its assets in Venezuela, it prohibits any oil exports or expansion of operations in the South American nation.

Robert Rennie, head of commodity and carbon strategy at Westpac, noted in a research note that "the loss of Chevron's Venezuelan barrels in the U.S. will leave refiners short and thus relying more on Middle Eastern crude."

President Donald Trump had revoked Chevron’s previous license on February 26. The earlier authorizations granted to Chevron and other foreign entities had supported a modest recovery in Venezuela’s heavily sanctioned oil sector, which had increased production to about 1 million barrels per day in recent years.

Wednesday's gains in crude prices largely offset the previous day’s losses, when both benchmarks fell around 1% on signs of slow progress in the ongoing Iran-U.S. nuclear negotiations. Any resolution to the nuclear standoff is expected to potentially unlock additional Iranian oil supply into the global market.

Meanwhile, European Union officials have reportedly begun seeking investment details from leading EU firms with operations in the United States. The move signals that Brussels is preparing to resume trade negotiations with Washington. The development comes after President Trump softened his stance over the weekend on imposing 50% tariffs on European goods.

While the group is scheduled to hold a full meeting on Wednesday, no immediate policy shifts are anticipated. Westpac’s Rennie added that the most likely outcome would be a production boost of 411,000 barrels per day, but cautioned that the increase could contribute to stockpiling amid signs of weak demand heading into the summer driving season in the United States.