Will U.S. tariffs on Venezuela tighten global oil supply, or will OPEC+ step in to balance the market?
Why Are Oil Prices Climbing?
Oil prices have risen for the fifth straight day as traders worry about tighter global supply. The U.S. recently announced a 25% tariff on countries buying Venezuelan crude, a move that could slash exports from Venezuela—a major oil producer.
The Impact of U.S. Tariffs
President Donald Trump’s new tariffs target nations importing Venezuelan oil, with China being the biggest buyer. Since Venezuela relies heavily on oil exports, these tariffs could cut its production by 200,000 barrels per day, according to analysts.
Meanwhile, Chevron, a major U.S. oil company, was given until May 27 to wind down operations in Venezuela. If Chevron leaves, it could further reduce the country’s output.
Also Read: U.S. Threatens India With Tariffs Over Venezuelan Oil—Will Modi Back Down?
OPEC+ Plans to Increase Production
While supply concerns push prices up, OPEC+ (a group including Russia and other oil-producing nations) plans to raise output in May. This could balance the market and limit price gains.
What’s Next for Oil Markets?
With new U.S. sanctions on Iranian oil and potential auto tariffs looming, traders are watching closely. Will supply shrink further, or will OPEC+ keep prices in check? For now, oil remains on an upward trend.
Brent crude rose 0.6% to $73.46 per barrel, while U.S. West Texas Intermediate (WTI) climbed to $69.52 per barrel
Also Read: Trump’s Oil Tariffs Spark Global Energy Crisis—India & China Scramble
