Oil prices held within a narrow range on Wednesday as market participants digested new U.S. sanctions on Venezuela impacting Chevron’s operations while anticipation ahead of a key OPEC+ production meeting later this week capped upward momentum.
As of 09:52 Nigerian time, Brent crude oil gained 6 cents or 0.1 percent to trade at $64.15 per barrel while U.S. West Texas Intermediate (WTI) crude edged up 8 cents or approximately 0.2 percent to settle at $60.99 per barrel.
The muted price movement follows the Trump administration’s latest directive restricting Chevron Corporation (NYSE: CVX) from exporting crude oil from Venezuela.
According to sources cited by Reuters, Chevron will be allowed to maintain its assets in the country but is barred from expanding activities or facilitating any outbound shipments of crude.
The move marks a further tightening of Washington’s sanctions on Caracas and is expected to have limited but notable implications on the global crude supply landscape.
Despite the geopolitical headwinds, broader sentiment remains cautious as traders await the outcome of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting.
A full ministerial session is scheduled for Wednesday, while eight member states are expected to reconvene on Saturday to finalise plans on whether to increase production quotas in July.
“A potential output hike by OPEC+ remains the dominant variable suppressing bullish sentiment in the short term,” said Tamas Varga, senior analyst at PVM Oil Associates. “The Chevron restrictions are price supportive, but traders are reluctant to initiate fresh long positions ahead of the cartel’s decision.”
Additional support for crude came from Canada, where production disruptions and evacuations in Alberta due to an active wildfire have reduced output temporarily.
Analysts also noted ongoing discussions of further U.S. sanctions on Russia as a potential upside risk to prices, given the continued geopolitical friction and its impact on global supply chains.
In the background, global macroeconomic variables, including progress on U.S.-Iran nuclear negotiations and broader trade developments, remain key drivers for long-term price trajectory.
On Wednesday, Iran’s nuclear chief, Mohammad Eslami, hinted at the possibility of allowing U.S. inspectors to visit nuclear sites, contingent upon successful negotiations with Washington.
Analysts view this as a potential inflection point in regional diplomacy, which could influence global oil supply if Iranian barrels re-enter the market.
Tim Waterer, chief market analyst at KCM Trade, noted in a market commentary: “While near-term price action is range-bound, markets could respond positively in the coming weeks if there is tangible progress on trade deals or easing of tensions between Washington and Tehran.”
For now, oil prices remain steady as traders adopt a wait-and-see approach, balancing short-term geopolitical risks with potential supply-side developments from OPEC+.
The next directional catalyst is expected to emerge following clarity from the upcoming OPEC+ deliberations.
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