Rising oil prices due to increased US restrictions on Venezuelan exports.

Oil prices witnessed a significant increase during trading on Wednesday, May 28, driven by the tightening of U.S. restrictions on Venezuelan crude exports, raising concerns about a global supply contraction.

This increase partially offset a large portion of the losses incurred by the market in the previous session, which was influenced by expectations of a possible return of Iranian oil to the markets if the ongoing nuclear talks are successful.

Brent crude futures rose by 0.4%, reaching $64.39 per barrel, while West Texas Intermediate crude also increased by the same rate to reach $61.19 per barrel.

Analysts attribute this rise to the recent U.S. decision restricting Chevron's activities in Venezuela, granting it a new license allowing it to retain its assets in the country but prohibiting it from exporting oil or expanding its operations there.

Reuters quoted informed sources stating that the U.S. administration made this decision as part of its ongoing pressure policy on Venezuela, after former President Donald Trump revoked the previous license in February.

This measure is expected to create a gap in oil supplies to U.S. refineries, potentially increasing their reliance on Middle Eastern crude.

In this regard, Robert Ryan, head of commodities and carbon strategy at Westpac, said: "The loss of Venezuelan barrels belonging to Chevron in the U.S. market will leave a gap for refineries, leading to increased reliance on crude from the Middle East."

It is worth noting that in recent years, Venezuela has managed to slightly increase its oil production to around one million barrels per day, thanks to licenses granted to foreign companies like Chevron.

In a related context, the OPEC+ alliance is meeting today, Wednesday, in a routine meeting, with observers not expecting discussions to result in any changes to the current production policy. Sources indicate that a group of eight alliance members may consider increasing production for July during separate talks next Saturday.