Oil Prices Climb for Fifth Consecutive Day Amid U.S. Tariffs on Venezuelan Crude

Global oil prices continued their upward trajectory for the fifth consecutive day on Tuesday, driven by growing concerns over supply disruptions following the latest U.S. tariffs targeting countries that purchase oil from Venezuela.

Market Movement By 9:50 AM WAT, Brent crude futures had risen by 31 cents to $73.28 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 30 cents to $69.41 per barrel. The OPEC basket also saw a significant 2% increase, reaching $74.91 per barrel.

The upward trend follows a strong session on Monday, where all major benchmarks gained over 1% after U.S. President Donald Trump imposed a 25% tariff on nations importing Venezuelan oil and gas.

Impact of Tariffs on Global Oil Supply Venezuela, heavily reliant on oil exports, counts China as its largest buyer.

However, Beijing is already embroiled in a trade conflict with Washington, making these new tariffs a potential game-changer in the global oil market. Analysts at ING noted that this move could lead to a considerable tightening of global oil supply.

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Additionally, oil markets are reacting positively to reports suggesting that the Trump administration may adopt a more selective approach in implementing reciprocal tariffs scheduled for April 2.

More Sanctions on Oil-Producing Nations This development comes on the heels of fresh U.S. sanctions aimed at curbing Iran’s oil exports. Meanwhile, the White House on Monday extended a deadline for Chevron, the last major U.S. oil producer operating in Venezuela, to continue its operations until May 27.

However, should Chevron’s license be revoked, analysts from ANZ estimate that Venezuelan oil production could drop by approximately 200,000 barrels per day.

Potential Auto Tariffs and Market Reaction Adding to the uncertainty, President Trump also hinted at impending tariffs on the automobile sector.

However, he signaled that not all of the proposed levies would take effect on April 2, and some countries might receive exemptions. This stance was interpreted by Wall Street as a sign of possible flexibility, offering some relief to markets that have been on edge in recent weeks.