Oil prices rise following Trump's revocation of Chevron's license in Venezuela.

As reported by Ukrinform, this information comes from Reuters.

Brent crude oil prices increased by 24 cents, or 0.33%, reaching $72.77 per barrel. Futures for West Texas Intermediate U.S. oil rose by 18 cents, or 0.26%, to $68.80 per barrel.

The day before, contracts settled at their lowest level since December 10 due to an unexpected rise in fuel inventories in the U.S., indicating weakened demand and hopes for a potential peace agreement between Ukraine and Russia. Both benchmarks have lost around 5% this month.

On Wednesday, Trump announced that he is revoking the license granted to Chevron for operations in Venezuela by his predecessor Joe Biden over two years ago.

Chevron exports approximately 240,000 barrels of crude oil daily from its operations in Venezuela, which accounts for more than a quarter of the country's total oil production. The revocation of the license means that Chevron will no longer be able to export Venezuelan oil.

“News regarding Venezuela has caused turmoil following the recent sell-off amid Russian-Ukrainian ceasefire negotiations,” said Hiroyuki Kikukawa, president of NS Trading, a subsidiary of Nissan Securities.

“Potential purchases from the U.S. Strategic Petroleum Reserve also supported the market, as WTI traded near its lowest level in over two months,” he added.

Last week, Trump stated that his administration would quickly replenish the SPR. He criticized Biden for using the SPR to lower gasoline prices.

Market participants remain focused on the Russian-Ukrainian peace talks led by Trump. Trump mentioned that Volodymyr Zelensky would visit Washington on Friday to sign an agreement regarding rare earth minerals, while the Ukrainian leader indicated that the success of the agreement would depend on these negotiations and continued U.S. assistance.

U.S. crude oil inventories unexpectedly fell last week as refining activity increased, while gasoline and distillate stocks rose, the Energy Information Administration reported on Wednesday.

“As this is a seasonal off-peak period when demand shifts from kerosene to gasoline, the sell-off triggered by rising inventory levels is likely over,” Kikukawa from NS Trading stated.

Additionally, Goldman Sachs noted in a report on Wednesday that the dual goals of the U.S. administration regarding commodity dominance and availability strengthen the base range for Brent at $70-85, a range that supports stable supply growth in the U.S.