Oil Prices Climb on Geopolitical Tensions and Anticipation Ahead of OPEC+ Meeting
Oil prices moved higher on Wednesday, driven by heightened concerns over possible new sanctions targeting Russia and the lack of progress in U.S.-Iran nuclear talks—both of which raised fears of potential disruptions to global crude supply. The rally comes just days before a critical OPEC+ meeting set to influence production strategy.
As of 08:10 ET (12:10 GMT), Brent crude futures rose 1% to $64.21 per barrel, while WTI crude gained 1.1% to $61.57 per barrel.
Russia Sanction Threats Fuel Market Tensions
Investor sentiment turned more bullish after U.S. President Donald Trump warned that Russian President Vladimir Putin was “playing with fire,” and signaled that additional sanctions on Russia were under consideration. These measures could impact Russian energy exports, heightening concerns about global supply stability.
Iran Nuclear Talks Stall, Supply Concerns Persist
In a parallel development, the fifth round of nuclear negotiations between the U.S. and Iran wrapped up Tuesday with little headway. Disputes over uranium enrichment remain unresolved. A failure to reach a deal may lead the U.S. to increase pressure on Iran, potentially tightening crude supplies further by restricting Iranian oil exports.
Chevron Restricted from Exporting Venezuelan Oil
Further tightening supply dynamics, the U.S. government has prohibited Chevron (NYSE: CVX) from exporting Venezuelan crude, according to a Reuters report. While Chevron has been granted limited authorization to maintain its joint ventures with PDVSA, it is barred from operating oilfields, expanding operations, or shipping crude—moves aimed at limiting financial flows to President Nicolás Maduro’s regime.
OPEC+ Meeting in Spotlight
Despite these supply-side pressures, the market’s main focus remains on the upcoming OPEC+ meeting scheduled for the weekend. According to sources cited by Reuters, the group may decide on another output increase of 411,000 barrels per day for July.
On Wednesday, OPEC+ is also expected to review long-term production targets, including potential adjustments to its 2027 output baselines. The group has gradually been rolling back earlier production cuts, adding barrels back to the market in both May and June.
U.S. Inventory Data Awaited
Traders are also awaiting the American Petroleum Institute’s weekly inventory report, which has been delayed due to the Memorial Day holiday earlier in the week.
