26 Mar 2025

WTI prices have fallen as the United States reaches a ceasefire agreement with Ukraine and Russia, which may allow Russian oil to re-enter the global market. President Trump has enacted a 25% tariff on imports from nations purchasing Venezuelan oil. According to the API Weekly Crude Oil Stock report, US crude inventories experienced a decrease of 4.6 million barrels last week.

During early European trading on Wednesday, West Texas Intermediate (WTI) crude oil prices halted their two-day upward trend, hovering around $69.00 per barrel. This decline in crude oil prices is attributed to a reduction in geopolitical tensions following separate agreements between the US, Ukraine, and Russia to cease maritime and energy infrastructure attacks. As part of this arrangement, the US has committed to advocating for the removal of certain sanctions against Russia, potentially facilitating the re-entry of Russian oil into the global market.

The agreement between the US and Russia goes further, with Washington pledging to work towards alleviating international sanctions on Russian agricultural and fertilizer exports, a long-standing request from Moscow. However, the Kremlin has indicated that the agreements concerning the Black Sea will not be implemented unless connections between specific Russian banks and the global financial system are restored.

Despite this, Oil prices found support amid supply concerns after US President Donald Trump signed an order imposing 25% tariffs on imports from countries purchasing Venezuelan Oil, potentially disrupting flows to major refiners in China, India, and Spain.

Also, Chevron has begun scaling back its tanker fleet in Venezuela, according to shipping data and a document reviewed on Tuesday. However, the Trump administration also extended Chevron’s deadline to exit Venezuela until May 27, with analysts estimating its withdrawal could reduce production by 200,000 barrels per day (bpd).

Additional support for Oil prices came from American Petroleum Institute (API) Weekly Crude Oil Stock data, which showed a significant 4.6-million-barrel decline in US crude inventories last week—well above market expectations of a 2.5-million-barrel drop. This suggests strong fuel demand in the world's largest economy.