May 28, 2025
By Idris Buba
Crude oil prices on Wednesday dropped in the global commodity market ahead of two OPEC+ meetings scheduled this week, meanwhile, the US’ decision to prohibit Chevron from operating in Venezuela has raised supply concerns, moderating price falls.
International benchmark Brent crude dropped by around 0.3% and traded at $63.58 per barrel. In the same vein, the US benchmark West Texas Intermediate (WTI) declined by about 0.2%, trading at $60.76 per barrel, as against $60.89 it traded in prior session.
The decline in prices was influenced by expectations that eight member countries of the OPEC+ group—which includes the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers—will increase production during Saturday’s meeting.
This scenario has to increased concerns of a potential supply surplus in markets where weak demand remains.
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Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman had begun a gradual easing of their voluntary production cuts totaling 2.2 million barrels per day (bpd) as of April.
In May, the eight countries implemented a production increase of 411,000 bpd, equivalent to a three-month rise, and announced a similar increase for June. Meanwhile, reports that the US has prohibited Chevron from operating in Venezuela limited further price falls by fueling concerns about supply disruptions.
Reports from international media outlets, said the US government issued Chevron a restricted license that allows only infrastructure and equipment maintenance to preserve its assets in Venezuela, hence the company is not permitted to engage in activities such as crude oil transactions .
Meanwhile, Chevron’s license which allowed oil production and exports in Venezuela has expired
