Oil prices recovered on Thursday amid renewed supply concerns after President Trump revoked the U.S. license allowing Chevron to operate in Venezuela. The move added uncertainty to global crude availability and pushed markets to reassess near-term supply balances.
By mid-morning trading, Brent crude futures had climbed 71 cents, or about 0.98%, to $73.24 per barrel. U.S. West Texas Intermediate (WTI) crude rose 64 cents, roughly 0.93%, to $69.26 per barrel. The gains represented a partial rebound after both benchmarks had slid about 4.5% earlier in the month and hit their lowest settlement levels since December 10 in the previous session.
Market participants noted that the Chevron license cancellation could restrict Western oil companies’ operations in Venezuela, a country with large proven reserves but limited production capacity due to years of underinvestment and sanctions-related constraints. Any further restrictions on foreign companies operating there could tighten available export volumes, supporting higher prices if demand remains steady.
That upward pressure, however, was tempered by geopolitical developments in Europe and the prospect of higher Russian crude flows. President Trump’s reported involvement in talks that could lead to a negotiated pause or settlement in the Ukraine conflict raised the possibility of increased Russian oil shipments returning to global markets. Traders said that successful progress toward a ceasefire or other agreement could remove a key source of supply disruption premium that has supported oil prices since the outset of the war.
Ukrainian President Volodymyr Zelenskiy is scheduled to visit Washington to sign an agreement on rare earth minerals, and he stressed the importance of continued U.S. aid to sustain Ukraine’s negotiating position. Analysts said that the U.S. role in any mediation process, combined with ongoing military and financial assistance, will influence both the course of the conflict and the related energy market impacts. If diplomatic efforts reduce the perceived risk of prolonged disruption, oil markets could see downward pressure; conversely, renewed hostilities or interruptions to exports would support higher prices.
In addition to the Venezuela and Ukraine factors, traders continued to weigh broader supply and demand fundamentals. Global demand indicators, inventory data and OPEC+ policy decisions remain key inputs for price direction. Any signs of stronger economic activity, lower stockpiles or tighter production plans among major producers could reinforce the recent uptick. Conversely, indications of weaker demand growth, rising inventories or a relaxation of sanctions and export constraints would likely weigh on prices.
Energy market analysts also pointed to seasonal patterns and refinery activity as near-term drivers. Increased refining throughputs and seasonal fuel demand can reduce crude inventories, supporting prices, while slower refinery runs or weaker fuel consumption typically allow inventories to build and exert downward pressure. Weather, shipping logistics and currency movements were cited as additional variables that could amplify price moves in the coming weeks.
Overall, Thursday’s price rebound reflected a balancing act between supply-side concerns following the Chevron license cancellation in Venezuela and the potential for demand-side or supply relief tied to diplomatic developments regarding Ukraine. Investors and oil traders will be watching official statements, inventory reports and OPEC+ communications closely for signals that would clarify the outlook for crude availability and global energy market stability.