Summary
• Brent and WTI gain about 1%
• Both benchmarks hit two-month lows in previous session
Reuters) – Oil prices rebounded on Thursday as supply concerns resurfaced after U.S. President Donald Trump’s revoked a licence granted to U.S. oil major Chevron to operate in Venezuela.
Gains were capped, however, by signs of a potential peace deal in Ukraine, which could result in higher Russian oil flows, and an unexpected rise in U.S. gasoline and distillate stocks.
Brent crude oil futures were up 71 cents, or 0.98% at $73.24 a barrel by 1049 GMT. U.S. West Texas Intermediate crude oil futures rose 64 cents, or 0.93%, to $69.26.
The contracts had settled in the previous session at their lowest since December 10 and both benchmarks have lost about 4.5% this month.
“Prices are stabilizing this morning around their two-month lows after Trump reversed Chevron’s licence to export Venezuelan oil,” said PVM analyst Tamas Varga.
Trump’s involvement in efforts to facilitate a Russia-Ukraine peace deal are also in focus.
Trump said Ukrainian President Volodymyr Zelenskiy would visit Washington on Friday to sign an agreement on rare earth minerals, though the Ukrainian leader said the success of talks would hinge on continued U.S. aid.
“Markets like clarity as opposed to uncertainty. Unless a clear path is presented on tariffs and Eastern European peace, oil prices will remain on the defensive with sporadic and spontaneous headline-based rallies,” said Varga.
U.S. crude oil stockpiles fell unexpectedly last week as refining activity ticked higher, while gasoline and distillate inventories registered surprising gains, the Energy Information Administration said on Wednesday.
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