Oil futures extended their fifth consecutive day of rally on Tuesday, with U.S. benchmark prices at their highest since late February. The surge followed a statement by former President Donald Trump on Truth Social that, from April 2, the U.S. will impose a 25% tariff on all imports from countries purchasing oil from Venezuela.
Trump’s proposed “secondary tariff” would be across the board, regardless of a nation’s general trade relationship with America, said Raymond James investment strategy analyst Pavel Molchanov. In an email, Molchanov characterized the move as a “textbook example of deploying tariffs as a tool for geopolitical influence rather than economic policy.”
Venezuela exported about 800,000 barrels daily—0.8% of global supply—primarily to China, with smaller amounts to Spain, Italy, Cuba, and India in 2024.
West Texas Intermediate (WTI) crude oil for May rose 35 cents (0.5%) to $69.46 a barrel, after rising to a high of $69.68 on the New York Mercantile Exchange, the highest since Feb. 28. May Brent crude rose 44 cents (0.6%) to $73.44 on ICE Futures Europe.
By Editor-In-Chief, Timothy Gocklin, MBA, MSF
