OIL: Oil Summary At European Close: Crude Rises

Crude is higher today after news that Trump would revoke Chevron’s license to produce oil in Venezuela and on Trump’s comments that tariffs on Mexico and Canada, and additional tariffs on China would go into effect on March 4.  

• WTI APR 25 up 2.1% at 70.07$/bbl
• Brent APR 25 up 1.9% at 73.92$/bbl
• Venezuela, Mexico and Canada are the biggest suppliers of heavy barrels to the U.S. and all face new sanctions related action after some swift announcements by Trump in the last 24 hours.
• President Trump said on Wednesday that he was revoking a license allowing Chevron to produce oil in Venezuela. Chevron exports about 240k b/d of crude from its Venezuela operations.
• The supply outlook also faces uncertainty from the impact of US policy on Iran sanctions and Ukraine peace negotiations and a potential resumption of Kurdistan exports. Ukrainian President Zelensky is scheduled to meet Trump on Friday.
• Markets remain concerned for the future demand outlook driven by US trade policies amid uncertainty over the strength of China’s economy and after weak US consumer confidence.
• Trump attacked European trade practices and has threatened 25% tariffs on imports from the EU.
• US crude inventories yesterday fell by 2.33mbbl against expectation for a build driven by an unexpected rise in refinery runs.
• Singapore total oil inventories fell by 1.56mbbl in the week to Feb. 26 to 43.73mbbl, according to Enterprise data.
• Asia’s crude oil imports are off to a weak start in 2025, as China continues to buy less and sanctions slow cargoes from Russia, Reuters reports.
• Pemex crude exports fell 44% y/y in Jan. to 532k b/d, the lowest level since Jan. 1990, Reuters reports.