Oil prices remained relatively unchanged on Tuesday as investors weighed the impact of newly announced U.S. tariffs on countries importing Venezuelan oil and grappled with an uncertain global demand outlook.
Key Highlights:
Tariff Impact:Both Brent crude and U.S. West Texas Intermediate (WTI) saw only minor changes—Brent up by 1 cent at $73.01 per barrel and WTI down by 1 cent to $69.10 per barrel. These modest moves come on the back of President Donald Trump’s announcement of a 25% tariff on countries that import oil and gas from Venezuela. As Venezuela’s main export, oil from the country is particularly vulnerable, especially with China as its largest buyer and already under separate U.S. tariff measures.
Market Concerns:Senior economist Tsuyoshi Ueno of NLI Research Institute noted that investors fear the multifaceted U.S. tariff regime could slow the economy and curb oil demand. At the same time, the prospect of tighter U.S. sanctions on Venezuelan and Iranian oil might restrict supply. Ueno expects WTI to hover around $70 for the remainder of the year, with potential seasonal gains during the driving season.
Chevron’s Role:Further complicating the picture, the Trump administration extended the deadline to May 27 for Chevron to wind down its operations in Venezuela. Analysts from ANZ estimate that the withdrawal of Chevron’s license could reduce Venezuelan production by approximately 200,000 barrels per day, potentially tightening supply.
Global Trade Tensions:Economic concerns amid mounting global trade tensions also exert downward pressure on oil prices, as uncertainty over future demand persists.
FMP API Insights
? Commodities APIAccess real-time and historical data on oil prices to monitor trends and assess how geopolitical developments and tariff policies are impacting the global energy market.
? Technical (StdDev) APIEvaluate market volatility and momentum in oil prices using standard deviation metrics, helping investors gauge how ongoing economic uncertainties are influencing the commodity market.
Conclusion
Despite the recent tariff announcements and extended operational deadlines affecting Venezuelan oil production, oil prices remain relatively stable amid a backdrop of global trade tensions and economic uncertainty. By leveraging insights from the Commodities and Technical (StdDev) APIs, investors can better navigate the evolving dynamics of the energy market and adjust their strategies accordingly.
