Brent crude futures increased by 47 cents, representing a 0.73% rise, reaching $64.56 per barrel by 0030 GMT. Meanwhile, U.S. West Texas Intermediate crude saw an uptick of 49 cents, approximately 0.8%, bringing it to $61.38 per barrel. Oil prices experienced an uptick in early trading on Wednesday following the U.S. government’s decision to prohibit Chevron from exporting crude oil from Venezuela under a new authorization concerning its assets in the region, thereby heightening the likelihood of a constrained supply. Brent crude futures increased by 47 cents, representing a 0.73% rise, reaching $64.56 per barrel by 0028 GMT. Meanwhile, U.S. West Texas Intermediate crude saw an uptick of 49 cents, approximately 0.8%, bringing it to $61.38 per barrel.

The Trump administration has granted a new authorization to U.S. major Chevron, permitting the company to retain its assets in Venezuela while prohibiting the export of oil or the expansion of its operations, as reported by Reuters on Tuesday, citing sources.”The loss of Chevron’s Venezuelan barrels in the U.S. will leave refiners short and thus relying more on Middle Eastern crude,” stated Westpac’s head of commodity and carbon strategy, Robert Rennie, in a note. Rennie indicated that an increase of 411,000 barrels per day for July represents the most probable outcome and would “contribute to rising inventory amid indications of weak demand as we approach the summer driving season in the U.S.” On February 26, U.S. President Donald Trump revoked the previous license. In recent years, the licenses granted to Chevron and other foreign companies have facilitated a modest rebound in the oil production of sanction-affected Venezuela, reaching approximately 1 million barrels per day.

On the economic front, officials from the European Union have initiated inquiries with leading EU companies regarding their investment strategies in the United States, indicating that Brussels is poised to progress trade discussions with Washington. The decision followed Trump’s retraction of a weekend threat to implement 50% tariffs on European goods, a move that would have negatively impacted economic activity and oil demand. Wednesday’s gains restored a significant portion of the losses incurred on Tuesday, when prices closed approximately 1% lower following indications of minimal advancement in the fifth round of Iran-U.S. nuclear negotiations. The market anticipates that a resolution between the two countries may lead to an increase in Iranian oil supply available in the market. A comprehensive assembly of the Organization of the Petroleum Exporting Countries and its allies, collectively referred to as OPEC+, is set for Wednesday; however, no alterations to policy are anticipated. According to sources, a decision regarding a July output hike may be reached on Saturday during discussions among eight members of the group.