Oil & Gas

Oil prices saw a modest uptick as supply risks emerged following the U.S. government's decision to restrict Chevron from exporting crude oil from Venezuela. This move limits the flow of Venezuelan oil into the U.S., forcing refiners to depend more on Middle Eastern sources, which could impact costs and market dynamics. While Brent rose to $64.16 and WTI to $60.98, gains were capped by expectations that OPEC+ may increase output soon—potentially at a Saturday meeting involving eight member countries. Analysts highlight that poor compliance with production quotas and concerns over an oversupplied second half of 2025 may keep prices from rising significantly, despite ongoing tensions.

Geopolitically, Washington’s action tightens pressure on Venezuela and adds strain to an already complex global energy landscape, especially as President Trump considers new sanctions against Russia raising concerns about disruptions in Russian energy exports. This reflects the West's broader strategy of isolating sanctioned oil producers while realigning supply chains. For the oil industry, the Chevron decision curbs operational flexibility and adds uncertainty for U.S. refiners. Meanwhile, OPEC+'s internal decisions will significantly shape market direction, with any increase in output possibly softening prices but supporting energy availability across key markets.