WTI Holds Above $61.00 After US Bans Chevron from Exporting Venezuelan Oil

WTI Crude Oil Prices Rise Amid Supply Risks and Geopolitical Tensions

WTI crude oil prices surged above the $61.00 mark on Wednesday, driven by increasing concerns over global supply disruptions. The recent decision by the US government to ban Chevron from exporting Venezuelan oil has intensified worries about tightening oil availability. Under this new regulation, Chevron is allowed to maintain its assets in Venezuela but is prohibited from selling Venezuelan crude, limiting one of the major supply sources in the market.

However, despite this supply risk, oil prices face downward pressure from expectations that OPEC+—the coalition of oil-producing countries—will increase production by an additional 411,000 barrels per day. While no immediate policy change was announced during their recent meeting, a final decision on the output increase is expected soon, potentially adding more barrels to the market and capping price gains.

Adding to the complexity, geopolitical tensions continue to mount as Russia intensifies drone attacks on Ukraine, raising concerns about stability in one of the world's key energy-producing regions. The United States is considering new sanctions against Russia in response to these ongoing hostilities and the breakdown of peace talks, further contributing to uncertainty in the oil markets.

Overall, the interplay between supply restrictions, expected production hikes, and geopolitical risks is creating a volatile environment for WTI crude oil prices, with traders closely watching upcoming OPEC+ decisions and geopolitical developments.