Oil Rises For Fifth Day On Supply Concerns After Venezuela Tariffs

Oil prices increased on Tuesday for the fifth consecutive day due to expectations that global supply could tighten following the U.S. announcement of tariffs on nations purchasing Venezuelan crude, although OPEC+ plans to implement an output rise in May restricted gains. Brent crude futures increased by 46 cents, or 0.6 per cent, reaching $73.46 a barrel by 1023 GMT. U.S. West Texas Intermediate crude oil increased by 41 cents, or 0.6 per cent, reaching $69.52. Both indices increased by over 1 per cent on Monday following U.S. President Donald Trump's declaration of a 25 per cent tariff on nations importing oil and gas from Venezuela. Venezuela's primary export is oil, and its biggest purchaser is China, which is already facing U.S. tariffs.

"Oil strengthened following the recent tariff actions by the U.S., although the rise was limited by reports of OPEC+ planning to boost output again in May," analysts at Panmure Liberum stated in a note. On Monday, the Trump administration also pushed back the deadline to May 27 for U.S. company Chevron (CVX.N) and opened a new tab to cease operations in Venezuela. According to analysts at ANZ, the revocation of Chevron's operating license could diminish production in the nation by approximately 200,000 barrels daily.

ALSO READ: Nagaland University Joins Hands With Locals To Conserve Indigenous Fish Species

At the same time, OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, is expected to maintain its strategy to increase oil production for a second straight month in May, four sources informed Reuters, due to stable oil prices and initiatives to compel certain members to cut output to offset earlier overproduction. Last week, the United States imposed fresh sanctions aimed at impacting Iranian oil exports.  Trump mentioned that automobile tariffs would be implemented soon, even as he suggested that not all of his anticipated levies would take effect on April 2, and some countries might receive exemptions, which Wall Street interpreted as a signal of flexibility on an issue that has unsettled markets for weeks.