Trump cancels Chevron's operating permit in Venezuela, oil prices rise for the first time in three days.

On Thursday, oil prices climbed for the first time in three days as supply concerns resurfaced after U.S. President Donald Trump announced the revocation of Chevron Corporation's operating license in Venezuela. As of press time, Brent crude oil futures rose by 19 cents to $72.27 per barrel, an increase of 0.26%. U.S. WTI crude oil futures prices increased by 14 cents to $68.76 per barrel, a gain of 0.20%. A day earlier, these contracts closed at their lowest levels since December 10th due to an unexpected increase in U.S. fuel inventories signaling weak demand, and hopes for a peace agreement between Russia and Ukraine. Both oil price benchmarks have fallen by around 5% this month. Trump stated on Wednesday that he would revoke the license granted to Chevron Corporation in Venezuela by the previous administration of President Biden more than two years ago. Chevron Corporation's operations in Venezuela export approximately 240,000 barrels of crude oil per day, accounting for more than a quarter of the country's total oil production. Termination of the license means that Chevron Corporation will no longer be able to export Venezuelan crude oil. Hiroyuki Kikukawa, president of NS Trading, a subsidiary of Nissan Securities, said: "During the Russia-Ukraine ceasefire negotiations, recent market selling was triggered by news from Venezuela." He said, "Because WTI crude oil is trading near two-month lows, potential buying from the U.S. strategic petroleum reserves also supported the market." Last week, Trump mentioned that his policies would soon fill up the strategic petroleum reserves. He criticized Biden for using the strategic petroleum reserve to lower gasoline prices. Market participants are still watching Trump's talks with Ukraine and Russia. Trump mentioned that Zelensky will visit Washington on Friday to sign a rare earth mining agreement, and the success of this agreement will depend on these negotiations and ongoing U.S. assistance. The U.S. Energy Corp. Information Agency released data on Wednesday showing an unexpected decrease in U.S. crude oil inventories last week due to increased refining activities, while gasoline and distillate stocks unexpectedly increased. Kikukawa of NS Trading said, "As demand shifts from heating oil to gasoline during this seasonal slump, selling driven by rising product inventories may have reached its peak." In addition, Goldman Sachs Group, Inc. stated in a report on Wednesday that the U.S. government's dominance in commodities and affordability dual goals have strengthened the bank's forecast for Brent crude oil prices in the $70-85 range, which is favorable for strong growth in U.S. supply.