Oil prices were steady on Tuesday after surging more than 1 percent in the previous season, as U.S. President Donald Trump threatened to impose 25 percent tariffs on countries purchasing oil and gas from Venezuela.
Brent Oil Futures expiring in May were largely unchanged at $73.05 per barrel as of 21:53 ET (01:53 GMT), while West Texas Intermediate (WTI) crude futures were muted at $68.65 per barrel. Both contracts had jumped 1.2 percent in the previous season after reports suggested Trump could take a narrower, more targeted approach to trade tariffs next month.
Gains limited by multiple factors
Gains on Tuesday were limited as investors mulled over a combination of factors affecting the supply-demand scenario, including OPEC+ plans of increasing oil production and U.S.-brokered Russia-Ukraine peace talks.
President Trump announced on Monday the imposition of a 25 percent tariff on all imports from countries that purchase oil or gas from Venezuela, effective April 2. This measure aimed to exert economic pressure on the Venezuelan government, led by President Nicolás Maduro, which the U.S. administration accuses of hostile actions and undermining democratic institutions.
Read more: Oil prices slip to $71.88 amid Trump tariffs, Russia-Ukraine talks
Venezuela’s oil exports impact economy
Venezuela’s oil exports are a significant component of its economy, with major buyers including China, the U.S., and India. Oil-producing nations, including Russia and other allies within OPEC+, are likely to stick with their plan to increase oil output by 135,000 barrels per day in May, marking a second consecutive monthly rise, Reuters reported on Tuesday, citing sources.
However, the cartel last week announced that seven member nations will implement additional oil production cuts to compensate for previous overproduction. These reductions, ranging from 189,000 to 435,000 barrels per day (bpd), are set to continue until June 2026, according to a new schedule. This move is expected to offset the group’s planned monthly production increases scheduled to commence next month.
President Trump reiterated on Monday the imposition of a 25 percent tariff on all imports from countries that purchase oil or gas from Venezuela, effective April 2. This measure aimed to exert economic pressure on the Venezuelan government, led by President Nicolás Maduro, which the U.S. administration accuses of hostile actions and undermining democratic institutions. Venezuela’s oil exports are a significant component of its economy, with major buyers including China, the U.S., and India.
