Brent crude oil futures climbed to approximately $73.3 per barrel on Tuesday, marking a three-week high as concerns over tighter global supply intensified following President Donald Trump’s announcement of a 25% tariff on U.S. imports from countries purchasing oil from Venezuela, set to take effect on April 2.
Oil prices hit three-week high
The move has the potential to disrupt crude flows to major refiners in China, India, Spain, and the U.S., heightening supply uncertainty.
However, the upward momentum in prices may be moderated by the administration’s decision to extend Chevron’s deadline to cease its oil operations and exports from Venezuela until May 27, allowing for continued supply in the near term. Additionally, geopolitical developments have weighed on the outlook. Ongoing ceasefire talks between Ukraine and Russia have raised the possibility of increased Russian oil exports if a resolution is reached, while reports suggesting that OPEC+ could move forward with a production hike as early as April indicate potential supply expansion.
Investors remain cautious
Meanwhile, investors remain cautious as they await further details on Trump’s reciprocal tariff measures expected next week, with lingering uncertainty over the scale of the duties and the countries that will be targeted. The combination of supply-side risks and policy uncertainties continues to drive volatility in the oil markets.
Similarly, WTI crude oil futures rose to around $69.4 per barrel, also hitting a three-week high, as traders assessed the impact of the new tariffs and potential shifts in global crude flows.
