Lagos — Crude oil futures are stabilizing after two days of decline, driven by concerns over supply disruptions following U.S. President Donald Trump’s reversal of a license allowing Chevron to operate in Venezuela.
This move halts Chevron’s ability to export Venezuelan crude, tightening global oil supplies. Meanwhile, unexpected declines in U.S. crude stockpiles coupled with rising refining activity, suggest a rebalancing.
However, concerns about weaker demand and high fuel inventories could weigh on sentiment. Geopolitical developments surrounding the Russia-Ukraine conflict add to the uncertainty.
Any resolution to the conflict could ease supply concerns and weigh on prices, although market participants remain wary. Additionally, the U.S. administration’s focus on oil production and prices could weigh on the market.
*George Pavel General Manager at Naga.com Middle East
