Oil prices remained largely unchanged on Tuesday as markets assessed the impact of newly imposed U.S. tariffs on nations purchasing Venezuelan crude and the uncertain outlook for global demand.
Brent crude futures edged up by just 1 cent to $73.01 per barrel by 0424 GMT, while U.S. West Texas Intermediate (WTI) crude slipped 1 cent to $69.10. Both benchmarks had gained over 1% on Monday following U.S. President Donald Trump’s announcement of a 25% tariff on countries importing oil and gas from Venezuela. The South American nation, which relies heavily on oil exports, counts China—already subject to U.S. tariffs—as its largest buyer.
Market analysts expressed concerns that Trump’s aggressive trade policies could slow economic growth and dampen oil demand. However, the possibility of tighter sanctions on Venezuelan and Iranian crude, along with Trump’s unpredictable policy shifts, has made it difficult for investors to take large positions.
“WTI is expected to remain around $70 per barrel for the rest of the year, with possible seasonal gains as the U.S. and other nations enter peak driving season,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.
Last week, Washington imposed new sanctions aimed at curbing Iranian oil exports. However, crude prices pulled back from session highs after the U.S. government extended a deadline to May 27 for Chevron to wind down its operations in Venezuela. According to ANZ analysts, Chevron’s exit could lead to a production decline of approximately 200,000 barrels per day.
Further pressure on oil prices came from concerns over global trade tensions. Trump signaled that tariffs on automobiles were imminent but hinted that not all threatened levies would be enacted on April 2, suggesting possible exemptions for some nations. Investors viewed this as a sign of flexibility amid prolonged market uncertainty.
Meanwhile, OPEC+—the alliance of the Organization of the Petroleum Exporting Countries and its partners, including Russia—is expected to maintain its plan to raise oil production for a second consecutive month in May. Sources told Reuters that the group aims to keep oil prices stable while compelling some members to cut output to offset previous overproduction.
Investors also kept a close watch on negotiations aimed at ending the war in Ukraine, which could lead to an increase in Russian crude supply to global markets. U.S. and Russian officials concluded discussions on Monday regarding a potential ceasefire at sea between Kyiv and Moscow, as part of broader peace efforts led by Washington.
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