Oil Prices Face Volatility as Trump Cancels Chevron's Venezuela License and Tariff Risks Loom

Oil markets react to U.S. policy shifts, including Venezuelan sanctions and upcoming tariffs on Canadian and Mexican imports, while OPEC+ considers production adjustments.

Oil prices experienced fluctuations this week, with Brent crude hovering near $73 per barrel and WTI crude near $70 per barrel after hitting two-month lows earlier.
President Trump's cancellation of Chevron's license to export Venezuelan crude has heightened supply concerns, potentially reducing Venezuela's oil production by 240,000 barrels per day.
Upcoming tariffs on Canadian and Mexican imports, set to take effect March 4, are expected to impact oil trade dynamics, with Canadian producers likely absorbing most costs initially.
OPEC+ is deliberating whether to proceed with planned production increases in April, as global supply uncertainties persist due to U.S. sanctions on Venezuela, Iran, and Russia.
Market sentiment remains mixed due to competing factors, including optimism over potential Russia-Ukraine peace talks and concerns about a slowing U.S. economy and rising fuel inventories.