Investing.com-- Oil prices rose Tuesday, adding to the previous season’s sharp gains, in the wake of U.S. President Donald Trump announcing the imposition of 25% tariffs on countries purchasing oil and gas from Venezuela.
At 08:50 ET (12:50 GMT), Brent Oil Futures expiring in May rose 0.5% to $72.76 per barrel, and West Texas Intermediate (WTI) crude futures gained 0.6% to $69.52 per barrel.
Both contracts jumped over 1% in the previous season after reports suggested Trump could take a narrower, more targeted approach to trade tariffs next month.
Venezuela tariffs spark supply worries
President Trump announced on Monday the imposition of a 25% tariff on all imports from countries that purchase oil or gas from Venezuela, effective April 2.
This measure is aimed at exerting economic pressure on the Venezuelan government, led by President Nicolás Maduro, which the U.S. administration accuses of hostile actions and undermining democratic institutions.
China is Venezuela’s largest oil buyer, directly and indirectly taking in 503,000 barrels per day of Venezuelan crude and fuel, or 55% of its exports, that is mostly rebranded as Malaysian after transshipment.
“Venezuela produced 918k b/d of crude oil in February, up from 760k b/d in 2023, while it exports around 750k b/d. As such, this move could mean a fairly sizeable tightening in the global oil balance,” ING analysts said in a note
OPEC+ set to proceed with planned May output hike
Oil-producing nations including Russia and other allies are likely to stick with its plan to increase oil output by 135,000 barrels per day in May, marking a second consecutive monthly rise, Reuters reported on Tuesday citing sources.
However, the cartel, known as OPEC+, last week announced that seven member nations will implement additional oil production cuts to compensate for previous overproduction.
These reductions, ranging from 189,000 to 435,000 barrels per day, are set to continue until June 2026, according to a new schedule.
This move is expected to offset the group’s planned monthly production increases, scheduled to commence next month.
Russa-Ukraine peace talks in focus
Investors are also assessing the development of U.S.-brokered Russia-Ukraine peace talks. The peace talks, if successful, can lead to an increased supply of Russian oil, potentially pressuring oil prices.
Media reports showed that U.S. and Russian officials concluded talks on Monday over a proposed Black Sea ceasefire between Kyiv and Moscow, part of Washington’s push for broader peace negotiations.
The discussions, seen as a step in President Donald Trump’s efforts to end the three-year war, aimed to ease maritime tensions.
(Ayushman Ojha contributed to this article.)