Oil up on Tuesday

Oil prices climbed for a fifth consecutive day on Tuesday as concerns over tightening global supply grew following new US tariffs on countries importing Venezuelan crude.

Brent crude rose 27 cents to $73.27 per barrel, while US West Texas Intermediate (WTI) gained 26 cents to reach $69.37. Both benchmarks had already risen over 1 per cent in the previous session after President Donald Trump announced a 25 per cent tariff on buyers of Venezuelan oil, a move impacting China, Venezuela’s largest customer.

Analysts at ING warned the tariffs could significantly tighten global oil supply, while additional US sanctions on Iranian oil exports further fuel supply concerns.

Meanwhile, the Trump administration extended Chevron’s deadline to exit Venezuela until May 27, a decision that could cut the country’s production by 200,000 barrels per day, according to ANZ analysts.

Despite fears that tariffs could slow economic growth and reduce oil demand, WTI is expected to hover around $70 per barrel for the rest of the year, with seasonal gains likely during peak driving months.

On the other hand, OPEC+ is expected to maintain its plan to increase oil output in May, with some members required to curb production to offset past overproduction, sources told Reuters.

Attribution: Reuters
Subediting: M. S. Salama