Oil Futures Rise as U.S. to Revoke License for Venezuelan Crude

Oil Futures Rise as U.S. to Revoke License for Venezuelan Crude

Crude futures recover ground on the Trump administration's plan to revoke the license under which Chevron is producing oil in Venezuela, which is subject to U.S. sanctions.

The implication of less heavy crude coming into the U.S. coincides with Trump reaffirming plans for 25% tariffs on Canada and Mexico starting next week, and follows last week's unexpected drop in U.S. crude stocks.

The 10% tariff on U.S. imports of Canadian oil will raise the cost of feedstock crude oil for the U.S. refiner, Yawger says. And whether refiners cut their run rates, tap storage, or pay the tariff, "there will be supply issues with Canadian barrels taxed at 10%," he adds.