Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Oil prices rose in Asian trade on Wednesday, supported by growing concerns over potential new sanctions on Russia and disruptions in Venezuelan crude flows, alongside uncertainty ahead of a crucial OPEC+ meeting later this week.
As of 21:28 ET (01:28 GMT), Brent crude futures for July delivery climbed 0.7% to $64.54 per barrel, while West Texas Intermediate (WTI) crude futures advanced 0.7% to $61.33 per barrel.
Market sentiment was buoyed by news that the U.S. had prohibited Chevron (NYSE:CVX) from exporting crude oil from Venezuela under a new asset authorization framework. The move, which allows Chevron to preserve its existing assets but bans operations, crude exports, and business expansion, has heightened fears of tighter supply from Venezuela, a key oil producer under sanctions.
Additionally, geopolitical risks added to supply concerns. U.S. President Donald Trump issued a stern warning to Russian President Vladimir Putin, saying he was “playing with fire” and signaling potential new sanctions against Russia. These measures could disrupt global energy flows and exacerbate supply pressures.
Meanwhile, U.S.-Iran nuclear negotiations concluded their fifth round on Tuesday with little progress, as disagreements over uranium enrichment remain unresolved. Failure to reach an agreement could result in renewed U.S. sanctions on Iranian oil exports, further tightening global supply.
Investors are also keeping a close watch on the upcoming OPEC+ meeting. The group of major oil producers is weighing a possible 411,000 barrels per day output hike for July, according to Reuters. The decision is part of OPEC+’s gradual unwinding of output cuts, with additional supply having already been introduced in May and June.
Traders are awaiting the delayed release of the American Petroleum Institute’s (API) weekly inventory report, typically a key market indicator, which was postponed due to the U.S. Memorial Day holiday on Monday.
Overall, the combination of geopolitical tensions, Venezuelan export restrictions, and potential OPEC+ supply adjustments is fueling market uncertainty, keeping oil prices supported as the global energy landscape remains in flux.
