WTI crude oil futures rose above $69 per barrel on Thursday, recovering slightly from a two-month low of $68.62 in the previous session, as supply concerns resurfaced.
Oil edges up from two-month low
The rebound came after former US President Donald Trump announced he was reversing a license granted by President Joe Biden that allowed Chevron to operate in Venezuela, a move that could tighten global oil supply. Chevron exports approximately 240,000 barrels per day from Venezuela, and halting its operations is expected to reduce the country's oil output, adding pressure to the market.
Meanwhile, the latest data from the Energy Information Administration (EIA) revealed a surprise build in US fuel inventories. Gasoline and distillate stocks saw unexpected increases, signaling weaker demand, while crude oil stockpiles declined, adding to concerns about supply fluctuations. The oil market also reacted to Trump's statement that his administration would move swiftly to refill the Strategic Petroleum Reserve (SPR), criticizing Biden for depleting it in an effort to curb gasoline prices.
Geopolitical developments remain in focus
Beyond supply-related factors, geopolitical developments remain in focus. Investors are closely watching Trump's ongoing peace talks with Russia and Ukraine, as tensions in Eastern Europe continue to impact global energy markets. Adding to the diplomatic landscape, Ukrainian President Volodymyr Zelensky is set to visit Washington on Friday to sign a rare earth mineral deal, which could have long-term implications for global energy and technology sectors.
