Crude oil climbed over 2% on escalating supply concerns
Crude oil prices posted their largest gain in six weeks on February 27, 2025, as renewed supply concerns emerged following the United States’ decision to tighten restrictions on Venezuelan crude exports
Crude oil prices posted their largest gain in six weeks on February 27, 2025, as renewed supply concerns emerged following the United States’ decision to tighten restrictions on Venezuelan crude exports. The upward momentum was further driven by Washington’s announcement of planned tariffs on the country’s two largest crude suppliers.
Brent crude gained $1.51, settling at $74.04 per barrel.
WTI rose $1.73, closing at $70.35 per barrel
Market sentiment strengthened after the U.S. government revoked a key license that had allowed Chevron Corp. to export Venezuelan oil. Given Chevron's role in facilitating over a quarter of Venezuela’s crude exports, the decision heightened fears of potential global supply constraints.
Meanwhile, OPEC+ has been discussing whether to proceed with a planned production increase in April or maintain current output levels. According to a Reuters report, member nations are reassessing supply dynamics in light of newly imposed US sanctions on Venezuela, Iran, and Russia.
Written by: Derek Yong