US Bars Chevron Venezuelan Crude Exports Tightening Global Oil Supply

Oil prices rose following the U.S. government's decision to bar Chevron from exporting crude oil from Venezuela under a new authorization that allows the company to maintain its assets but prohibits exports or expansion. This move reflects a tougher stance by the Trump administration, which revoked Chevron’s previous license and aims to tighten supply, potentially reducing Venezuelan oil output by 15-30% over the next year. The loss of Venezuelan barrels in the U.S. market is expected to increase reliance on Middle Eastern crude, while OPEC+ meetings are underway with a possible output hike anticipated, although weak demand during the U.S. summer driving season could offset the impact. Despite the supply concerns, price gains have been limited due to expectations of increased OPEC+ production and ongoing geopolitical tensions, including U.S. sanctions on Russia. The situation follows broader geopolitical dynamics affecting global oil markets, including Iran-U.S. nuclear talks and U.S.-EU trade relations. Overall, the new restrictions on Venezuelan oil exports underscore the complex interplay of sanctions, production policies, and geopolitical risks shaping the oil market.