OIL PRICE CLIMBS FOR FIFTH STRAIGHT DAY OVER SUPPLY CUT FEARS

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Oil prices rose on Tuesday for a fifth day on concerns that global supply will reduce after the U.S. announced tariffs on countries that buy Venezuelan crude.

Brent crude futures were up 31 cents to $73.28 a barrel by 9:50 AM WAT, U.S. West Texas Intermediate crude climbed 30 cents to $69.41. The OPEC basket rose 2 per cent to $74.91.

The benchmarks gained more than 1% in the previous session after U.S. President Donald Trump announced a 25% tariff on countries importing oil and gas from Venezuela.

Oil is Venezuela’s main export and China, which is already the subject of U.S. tariffs, is its largest buyer.

This move could mean a fairly sizeable tightening in the global oil balance, ING analysts wrote in a note on Tuesday.

They added oil, along with broader risk assets, also benefited from suggestions the Trump administration may take a more targeted approach with reciprocal tariffs the U.S. is set to enact on April 2.

Last week, the U.S. issued new sanctions intended to hit Iranian oil exports.

The Trump administration also on Monday extended a deadline to May 27 for U.S. producer Chevron.

The withdrawal of Chevron’s licence to operate could reduce production in the country by about 200,000 barrels per day, according to ANZ analysts.

Trump also said automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.

This won 20% support for its climate resolutions at BP’s 2021 annual general meeting. And 17% in 2023.

Quoting four sources, Reuters said OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, will likely stick to its plan to raise oil output for a second consecutive month in May.

The move is amid at steadying oil prices and plans to force some members to reduce pumping to compensate for past overproduction.