The Rise in Oil Prices
Oil prices hit a three-week high on Wednesday amid rising global supply concerns. Brent crude rose 0.3% to $73.22 per barrel, while U.S. West Texas Intermediate (WTI) increased by 0.3% to $69.20.
The surge follows a sharp drop in U.S. crude inventories by 4.6 million barrels, indicating strong fuel demand.
The U.S. has ramped up efforts to curb oil exports from Venezuela and Iran, sparking fears of tighter supplies. President Trump signed an order imposing 25% tariffs on countries buying Venezuelan oil, directly targeting China, Venezuela’s top customer.
Meanwhile, new sanctions were placed on Iranian oil sales, including Chinese refineries.
Chinese traders paused purchases of Venezuelan oil, waiting to see how the U.S. sanctions would unfold.
This hesitation added to supply worries, pushing prices higher. However, analysts warn that Trump’s broader trade policies could slow economic growth and limit oil demand, making the rally short-lived
In a surprising move, the U.S. brokered deals with Ukraine and Russia to halt attacks on energy targets, easing some pressure on oil prices. Yet, skepticism remains as both nations doubt each other’s compliance.
Also Read: Trump’s Oil Tariffs Spark Global Energy Crisis—India & China Scramble
