Oil prices experienced a modest rise during Wednesday’s Asian trading session as investors weighed the risks of potential new sanctions on Russia alongside slow progress in nuclear negotiations between the U.S. and Iran. These factors contributed to concerns over possible disruptions in the global oil supply. Meanwhile, market participants remained cautious ahead of a key OPEC+ meeting scheduled for later this week.
Another driver behind the price uptick was the recent U.S. move to restrict Chevron’s ability to export crude oil from Venezuela, further tightening global supply expectations.
By 9:28 PM ET, July Brent crude futures increased by 0.7% to $64.54 per barrel. Similarly, West Texas Intermediate (WTI) futures rose by 0.7%, reaching $61.33 per barrel.
Investors are also awaiting the release of the American Petroleum Institute’s weekly inventory report, which has been postponed due to the U.S. Memorial Day holiday on Monday.
Anticipation Builds Ahead of OPEC+ Decision
The OPEC+ alliance – which includes OPEC members and allied producers – is reportedly considering another production increase at its upcoming weekend meeting. According to Reuters sources, eight OPEC+ countries may agree to raise output by approximately 411,000 barrels per day for July, continuing the gradual easing of supply cuts implemented earlier this year.
While the market prepares for a boost in production, uncertainty remains. U.S. President Donald Trump recently accused Russian President Vladimir Putin of “playing with fire” and indicated the possibility of imposing further sanctions on Russia, a move that could disrupt Russian energy exports and unsettle global oil markets.
Analysts at ING commented that early trading gains might be influenced by Trump’s remarks about Russia, signaling heightened geopolitical risks.
On the diplomatic front, the latest round of U.S.-Iran nuclear talks concluded on Tuesday with minimal progress. Disagreements over uranium enrichment persist, and failure to reach an agreement could lead the U.S. to tighten sanctions on Iranian oil exports, further pressuring supply.
Chevron’s Venezuela Export Ban Adds to Supply Concerns
The Trump administration has allowed Chevron to maintain ownership stakes in Venezuelan oil ventures but has restricted the company’s operational activities. Reuters reports that under new guidelines, Chevron cannot operate oil fields, export crude, or expand its operations, measures designed to prevent financial support from reaching President Nicolás Maduro’s government.
This limitation on Chevron’s Venezuelan operations adds another layer of complexity to global oil supply forecasts.