Oil prices rose during Asian trading on Wednesday as concerns over tighter supply grew following United States President Donald Trump’s threats to impose tariffs on countries importing oil and gas from Venezuela.
By 3:25 pm AEDT (4:25 am GMT), Brent crude futures were up $0.16, or 0.3%, at $73.20 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $0.19, or 0.3%, to $69.19 per barrel.
On Monday, Trump signed an executive order under the 1977 International Emergency Economic Powers Act, authorising 25% tariffs on imports from any country purchasing Venezuelan crude oil or liquid fuels.
Venezuela, which relies heavily on oil exports, counts China - already a target of U.S. import tariffs - as its largest buyer. The U.S. administration also extended a deadline until 27 May for U.S. energy firm Chevron to wind down its Venezuelan operations.
Meanwhile, ANZ analysts noted: "Crude oil prices were relatively unchanged as traders assessed the latest efforts on a ceasefire in the Russia-Ukraine war. Ukrainian President Volodymyr Zelensky agreed to implement a partial truce.
"The U.S. also said that Russia has agreed to develop measures for implementing a ban on striking Ukraine's energy assets.
"A potential truce between Russia and Ukraine could see an easing of U.S. and European restrictions on Moscow’s oil industry."
Adding to supply concerns, industry data from the American Petroleum Institute (API) showed U.S. crude inventories fell by 4.6 million barrels in the week ending March 21, significantly exceeding analysts’ expectations of a 2.5 million-barrel decline.
Official U.S. government data on crude stockpiles is set for release later on Wednesday.
