Oil market diverged as investors weighed supply risks
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.
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