Oil prices jumped as much as 2% on today after President Donald Trump revoked a key license allowing Chevron to operate in Venezuela, a move that could shake up both global oil markets and U.S.-Venezuela relations. The license, first issued under President Joe Biden in 2022, had allowed Chevron to continue limited operations in the country despite U.S. sanctions. With its cancellation, Venezuela now faces a significant loss of oil revenue, while U.S. refiners may struggle to secure supplies of heavy crude traditionally sourced from the region.
Trump’s decision comes amid accusations that Venezuelan President Nicolás Maduro’s government has failed to meet electoral conditions and has been slow in repatriating deported criminals from the U.S.. In a Truth Social post, Trump declared that he was “reversing the concessions” Biden had made to Maduro, cutting off the oil agreement as of March 1. The Venezuelan government slammed the decision, calling it “damaging” and warning that it could drive more Venezuelans to migrate to the U.S.. Some analysts have echoed this concern, including Chevron CEO Mike Wirth, who recently warned that forcing Chevron out of Venezuela could further destabilize the country’s economy, making the region more vulnerable to Russian and Chinese influence.
Markets reacted quickly to the announcement, with Brent crude rising to $73.96 per barrel and WTI crude climbing above $70 per barrel. With Chevron exporting 240,000 barrels per day from Venezuela—over a quarter of the country’s total oil production—this loss of supply is expected to tighten global crude markets. If Venezuela struggles to maintain its output without Chevron, some analysts believe OPEC+ could step in to increase production, while others warn that the price of heavy crude could spike, putting additional pressure on U.S. refiners and gasoline prices. The situation remains uncertain, but if OPEC+ holds production steady, American consumers may feel the effects at the pump in the coming months.
This decision also raises broader geopolitical questions. By pulling out of Venezuela, the U.S. may be creating an opportunity for China and Russia to expand their influence in the country’s oil sector. With Chevron forced out, Maduro may look elsewhere for foreign investment, giving U.S. adversaries greater leverage in Latin America. The long-term effects of this policy shift remain to be seen, but one thing is clear: Trump’s move is sending ripples through both energy markets and international relations, with economic and political consequences that could unfold in unpredictable ways.
