Oil Prices Rise Amid US Tariffs on Venezuelan Crude

Oil Prices Rise : Oil prices have recorded a third consecutive weekly gain as the United States imposed new tariffs on Venezuelan crude. The increased pressure on Venezuela and Iran has contributed to a 6-7% rise in Brent and West Texas Intermediate (WTI) crude oil prices in March.

The US government has introduced a 25% tariff on Venezuelan crude intensifying challenges for the country’s oil industry. Additionally sanctions on Iran’s oil exports have created uncertainty in the global market. As a result, investors are closely watching how these restrictions will affect supply and demand.

Despite concerns over a possible global recession, oil prices have remained resilient. Brent crude settled at $73.63 per barrel, while WTI closed at $69.36 per barrel. Market analysts believe that these prices could see further fluctuations based on geopolitical developments and supply constraints.

US crude oil inventories saw a significant drop, with stockpiles decreasing by 3.3 million barrels last week. This reduction, reported by the Energy Information Administration, was much larger than analysts had predicted. The decline in supply has contributed to the upward trend in oil prices.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, are preparing to gradually increase oil production starting in April. This move aims to stabilize prices and meet global demand. However, the ongoing US sanctions on Venezuela and Iran could limit the impact of OPEC’s production increase.

Analysts suggest that the second quarter of 2025 could be more volatile than expected. If Venezuelan and Iranian crude oil production continues to decline, global supply shortages could push prices higher. Additionally, the uncertain political climate and potential economic downturn may further influence market trends.

Oil Prices Rise: Overall, oil prices rise highlights the complexities of global trade policies and their impact on energy markets. Investors and policymakers will be closely monitoring these developments in the coming weeks.