Oil prices edged up slightly on Wednesday as investors weighed supply risks after the U.S. ban on Chevron exporting oil from Venezuela and U.S. President Donald Trump announced he was considering new sanctions against Russia, although expectations of increased production from OPEC+ continued to limit gains, UNN writes with reference to Reuters.
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Brent crude futures rose 25 cents, or 0.4%, to $64.34 a barrel at 03:45 GMT (06:45 Kyiv time), while U.S. West Texas Intermediate crude rose 24 cents, or 0.4%, to $61.13 a barrel.
The Trump administration has issued a new permit to major U.S. company Chevron that will allow it to retain assets in Venezuela but not export oil or expand its operations, Reuters reported on Tuesday, citing sources.
"The loss of Chevron's Venezuelan barrels in the U.S. will leave refiners without supplies and thus more reliant on Middle Eastern crude," Westpac's head of commodities and carbon strategy Robert Rennie wrote in a note.
U.S. President Donald Trump revoked the previous license on February 26.
In recent years, licenses from Chevron and other foreign companies have contributed to a slight recovery in oil production in Venezuela, which has been hit by sanctions, to about 1 million barrels per day.
The market also found some support after Trump said this week that he was weighing new sanctions against Russia.
"This increases the risk of further sanctions against Russia, putting Russian energy flows at risk," ING strategists said on Wednesday regarding commodities.
However, price gains were limited on Wednesday amid expectations that OPEC+ will decide to increase production at a meeting this week.
A meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, is scheduled for Wednesday, although no policy changes are expected. According to sources, a decision to increase production in July could be made on Saturday, when eight members of the group will hold talks.
"Oil prices have changed only slightly in the last couple of sessions as the industry is mainly preparing for a supply glut in the second half of the year," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Sachdeva added that OPEC members' non-compliance with production quotas and Trump's trade policy are negatively affecting global oil demand.