Crude oil futures traded higher on Wednesday morning after the US barred Chevron from exporting crude oil from Venezuela under a new authorization targeting company’s assets in that country.

At 9.59 am on Wednesday, August Brent oil futures were at $63.88, up by 0.49 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $61.20, up by 0.51 per cent. June crude oil futures were trading at ₹5,251 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹5,191, up by 1.16 per cent, and July futures were trading at ₹5,224 against the previous close of ₹5,167, up by 1.10 per cent.

Quoting sources, a Reuters report said that the US administration has issued a narrow authorization for US oil producer Chevron to keep assets in Venezuela, including its stakes in oil joint ventures with state company PDVSA. It said Chevron and several European firms had been in talks with officials in Washington in recent weeks to obtain authorizations to preserve their stakes and assets in Venezuela amid US President Donald Trump’s restrictive policy toward the nation.

Though this authorization allows the company to maintain assets in Venezuela, it restricts the company from exporting oil or expanding its activities.

Meanwhile, Trump has warned Russian President Vladimir Putin on the ongoing Russia-Ukraine war. In a post on the social media platform Truth Social, Trump said: “What Vladimir Putin doesn’t realize is that if it weren’t for me, lots of really bad things would have already happened to Russia, and I mean REALLY BAD. He’s playing with fire!”

In their Commodities Feed for Wednesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said Trump’s social media post suggested his frustration with Putin’s intensified attacks on Ukraine in recent days. This is despite a US push for a ceasefire. This increases the risk of further sanctions against Russia, putting Russian energy flows at risk.

They said that crude oil prices came under pressure on Tuesday, with US dollar strength providing some headwinds for the market.

They said participants are taking a wait-and-see approach to Saturday’s OPEC+ meeting, when members will decide on July output levels.

June natural gas futures were trading at ₹321.50 on MCX during the initial hour of trading on Wednesday against the previous close of ₹315.90, up by 1.77 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹20,615 in the initial hour of trading on Wednesday against the previous close of ₹20,680, down by 0.31 per cent.

June turmeric (farmer polished) futures were trading at ₹13,680 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹13,712, down by 0.23 per cent.

Published on May 28, 2025