Market eyes Ukraine situation with hope
February 28, 2025
The energy markets rebounded on the news of Chevron’s license being revoked in Venezuela by President Trump. No more crude oil coming out of there for now. This is political but it did offer support to prices and the markets rallied off their recent lows, but the rebound was not enough to firmly say a near term bottom is in place. The bulls have more work to do if they are taking these markets higher.
Sources said the announced cancellation of a license for Chevron to operate in Venezuela is expected to lead to the negotiation of a fresh agreement with state company PDVSA to export crude oil to destinations other than the US.
The above moves are very likely to increase the feedstock cost for Gulf Coast refiners. But with the potential for tariffs being enacted that creates economic uncertainty and that is a weight on prices. This all likely keeps the market congested just like it has been for some time now .
Ukraine and Russia negotiation continue offering the market hope of a deal. Ukraine and the US agreed upon a deal for the US to have mineral rights in Ukraine, this news is also helping to suggest a deal is moving forward.