Oil prices rise after U.S. bars Chevron’s crude exports from Venezuela

Oil prices increased on Wednesday, May 28, 2025, as investors considered supply risks after the United States barred Chevron from exporting crude from Venezuela under a new asset authorisation.

Brent crude futures rose 7 cents, or 0.1%, to $64.16 a barrel by 0640 GMT, while U.S. West Texas Intermediate crude gained 9 cents, or 0.2%, at $60.98 a barrel.

The United States President Donald Trump administration has issued a new authorisation for U.S.-major Chevron that would allow it to keep assets in Venezuela but not to export oil or expand its activities, Reuters reported citing sources.

“The loss of Chevron’s Venezuelan barrels in the U.S. will leave refiners short and thus relying more on Middle Eastern crude,” Westpac’s head of commodity and carbon strategy Robert Rennie wrote in a note.

Trump had revoked the previous licence on February 26.

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In recent years, the licences to Chevron and other foreign companies supported a slight recovery in sanction-hit Venezuelan oil output to about 1 million barrels per day.

However, price gains were capped on Wednesday amid expectations that OPEC+ will decide to increase output at a meeting this week.

A full meeting of the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, is scheduled for Wednesday, though market watchers expect no change to their policy of increasing output.

A July output hike could be decided on Saturday when eight members of the group hold talks.

The Star