Oil rises as Trump revokes exemption on Venezuela oil sales

FILE FOOTAGE - WASHINGTON DC, US - SEP. 20, 2023 - NEW YORK, US - MARCH 8, 2022 - ELMET, TATARSTAN - 2023 - Oil prices increased on Thursday,driven by several developments, including US President Donald Trump's decision to revoke an exemption on oil sales to Venezuela, data showing a decline in US crude inventories, and ongoing concerns about US tariff policies.The international benchmark Brent crude increased by 0.1%, trading at $72.30 per barrel at 10.46 a.m. local time (0746 GMT), up from $72.20 at the close of the previous session.The US benchmark West Texas Intermediate (WTI) increased by 0.1%, reaching $68.74 per barrel, compared to its prior session close of $68.67.Trump's announcement on Wednesday marked a reversal of previous concessions granted to Venezuela under the Biden administration, which had eased sanctions on Venezuelan oil exports."We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement, dated November 26, 2022, and also having to do with Electoral conditions within Venezuela, which have not been met by the Maduro regime," Trump said on Truth Social."I am therefore ordering that the ineffective and unmet Biden 'Concession Agreement' be terminated as of the March 1st option to renew." he added.In 2022, the former administration had eased some oil sanctions on Venezuela, marking the first significant crack in a years-long US embargo.The US Treasury Department issued Venezuela General License 41, which authorizes Chevron — one of the leading private oil companies in Venezuela — to "resume limited natural resource extraction operations in Venezuela."Trump's move propelled oil prices higher as markets feared tight global supplies.Meanwhile, the US Energy Information Administration (EIA) reported a decline in crude inventories, which further fueled price increases, suggesting stronger domestic demand.(Footage by AA/Anadolu Agency via Getty Images)