Oil Prices Rise on Tighter Crude Supplies

Brent crude futures gained 24 cents or 0.3 per cent to settle at $74.03 a barrel and the US West Texas Intermediate (WTI) crude futures rose by 27 cents to trade at $69.92 per barrel.

Traders assessed President Donald Trump’s imposition of a new 25 per cent tariff on potential buyers of Venezuelan crude.

Oil is Venezuela’s main export and China, which is already the subject of US tariffs, is the largest buyer.

The 25 per cent tariff to be imposed on buyers of Venezuelan oil will take effect on April 2 and would be combined with any existing tariffs, according to the executive order.

The tariff will expire one year after the country last imported Venezuelan oil, the order said, and would apply to countries that buy the commodity from Venezuela through third parties.

Alongside China, India, Spain, Italy and Cuba are other consumers of Venezuelan oil.

Following this, India’s Reliance Industries which operates the world’s biggest refining complex, will halt Venezuelan oil imports following the tariff announcement.

India moved on Thursday to deny entry to a Tanzanian-flagged tanker carrying Russian crude, signaling that the country is ramping up scrutiny of vessels transporting oil from Russia.

India has become the largest importer of Russian crude, with Russian oil comprising roughly 35 per cent of its total crude imports last year. However, the country has faced increasing pressure due to US and European sanctions targeting Russian oil exports, which have disrupted global shipping routes.

Also, President Trump unveiled his plan on Wednesday to implement 25 per cent tariffs on imported cars and light trucks effective next week, while those on auto parts begin on May 3.

Market analysts do not expect prices to return to the higher levels seen in early 2025 as uncertainty over U.S. policy and the prospect of tariff wars weigh on demand.

Data on US crude inventories on Wednesday showed tighter U.S. supplies, as stockpiles fell by 3.3 million barrels last week.

Meanwhile, the number of Americans filing new applications for unemployment benefits slipped last week.