LONDON: Oil prices remained stable on Wednesday after the U.S. prohibited Chevron from exporting crude oil from Venezuela, although an anticipated OPEC+ decision later this week to boost production in July limited the increases. Brent crude futures rose by 6 cents, or 0.1%, reaching $64.15 a barrel by 0852 GMT, whereas U.S. West Texas Intermediate crude increased by 8 cents, approximately 0.2 per cent, to $60.99 a barrel. The Trump administration has granted a new authorisation for U.S.-based Chevron (CVX.N), according to Reuters, which allows the company to retain assets in Venezuela but prohibits it from exporting oil or expanding operations.
According to PVM analyst Tamas Varga, the decrease in oil prices was constrained by production halts and evacuations in Alberta, Canada, resulting from a wildfire, along with discussions of additional sanctions on Russia by the U.S. Nonetheless, the chance that OPEC+ could choose to raise production at a meeting this week restricted price increases. A complete gathering of the Organisation of the Petroleum Exporting Countries and its partners, collectively referred to as OPEC+, is set for Wednesday.
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Sources indicate that a decision on a July production increase could be made on Saturday when eight members of the group meet for discussions. Nonetheless, prices might react favorably in the upcoming weeks and months if there are advancements in global trade discussions or in addressing U.S.-Iranian tensions, stated Tim Waterer, chief market analyst at KCM Trade, in a memo. On Wednesday, Iran's nuclear chief, Mohammad Eslami, mentioned that it could permit the U.N. nuclear watchdog to send American inspectors to inspect Iranian nuclear facilities if negotiations between Tehran and Washington are successful.
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