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Oil market diverged as investors weighed supply risksCrude oil benchmarks closed on mixed ground on Tuesday, 25 March 2025, as traders balanced the implications of a potential Russia–Ukraine truce against the US’s looming tariff threats on buyers of Venezuelan crude. |
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Crude oil benchmarks closed on mixed ground on Tuesday, 25 March 2025, as traders balanced the implications of a potential Russia–Ukraine truce against the US’s looming tariff threats on buyers of Venezuelan crude.
Brent crude futures settled 2 cents higher at $73.02/barrel.
WTI crude slipped 11 cents to close at $69/barrel.
Market sentiment turned cautious after Ukraine declared a ceasefire, coinciding with reports of a nascent Russian agreement to guarantee safe navigation in the Black Sea and protect energy infrastructure. A lasting truce could pave the way for the US and Europe to ease restrictions on Moscow’s oil exports.
Meanwhile, Washington’s plans to impose 25% tariffs on buyers of Venezuelan crude threaten to disrupt refiners in China, India, and Western Europe. The market is already bracing for a potential supply shortfall of 200,000 barrels/day if Chevron’s operating licence in Venezuela expires as expected.
Written by: Derek Yong
