The energy market remains volatile. On Wednesday, oil prices rose as the US tightened restrictions on exports of raw materials from Venezuela. In particular, the ban has affected one of the largest US producers, Chevron. The Trump administration issued a new authorization allowing the company to retain its assets in the country but prohibiting their expansion and crude exports, according to Reuters.
Both Brent and WTI benchmark oil grades increased by about 0.4%. However, their growth was limited by the rising production volumes of OPEC+, the agency notes.
Westpac expert Robert Rennie said that the loss of Venezuelan barrels could lead to a shortage of crude supplied to US refineries. In such a scenario, American companies would have to shift their focus to the Middle Eastern energy sources.
An OPEC+ meeting will take place on Wednesday, though markets do not anticipate any immediate policy changes. According to Reuters, the member countries are expected to decide on increasing oil production from July during the next round of negotiations on Saturday, according to Reuters.