Crude oil prices saw a sharp increase following U.S. President Donald Trump’s announcement that he would impose 25% tariffs on countries purchasing oil from Venezuela.
West Texas Intermediate (WTI) futures at NYMEX jumped 11%, and Brent futures at ICE rose 6.7% from their lows on March 5.
Trump revealed on Truth Social that he would sign an executive order on April 2 to impose the tariffs on Venezuela’s oil buyers. He referred to this day as “Liberation Day in America” due to the implementation of reciprocal tariffs, a political move aimed at exerting pressure on Venezuelan President Nicolás Maduro and China, the largest importer of Venezuelan crude.
The news triggered a surge in oil prices, with WTI futures climbing 1.22% to $69.11 per barrel, and Brent futures rising 1.16% to $73 per barrel. Both benchmarks hit their highest levels since March 3, despite a slight pullback during Tuesday’s Asian session.
Trump framed the new tariffs as a “secondary tariff” designed to address illegal migration from Venezuela, stating, “Venezuela has purposefully and deceitfully sent to the United States, undercover, tens of thousands of high-level and other criminals, many of whom are murderers and people of a very violent nature.” He further emphasized that any country purchasing oil or gas from Venezuela would face a 25% tariff on all trade with the U.S.
China, the largest buyer of Venezuelan oil, followed by the U.S., India, Spain, Italy, and Cuba, will be directly impacted by the new tariffs. The measure will also extend to countries that buy Venezuelan oil through third parties, starting on April 2, and will remain in place for a year after each country’s last purchase of Venezuelan oil.
To soften the impact on U.S. importers, the U.S. Treasury Department extended Chevron’s license to produce oil in Venezuela until May 27. Chevron, a major U.S. oil company, operates five onshore and offshore projects in Venezuela. Despite the looming expiration of the license, Venezuelan oil exports have reached their highest levels since November. The U.S. Treasury had previously urged Chevron to wind down its operations by April 3.
