Investing.com-- Oil prices were steady in Asian trading on Tuesday after jumping more than 1% in the previous season, as U.S. President Donald Trump threatened to impose 25% tariffs on countries purchasing oil and gas from Venezuela.
Brent Oil Futures expiring in May were largely unchanged at $73.05 per barrel as of 21:53 ET (01:53 GMT), while West Texas Intermediate (WTI) crude futures were muted at $68.65 per barrel.
Both contracts had jumped 1.2% in the previous season after reports suggested Trump could take a narrower, more targeted approach to trade tariffs next month.
Gains on Tuesday were limited as investors mulled over a combination of factors affecting the supply-demand scenario, including OPEC+ plans of increasing oil production, and U.S.-brokered Russia-Ukraine peace talks.
Trump’s plan for tariffs on Venezuela oil buyers sparks supply disruption worries
President Trump announced on Monday the imposition of a 25% tariff on all imports from countries that purchase oil or gas from Venezuela, effective April 2.
This measure aimed to exert economic pressure on the Venezuelan government, led by President Nicolás Maduro, which the U.S. administration accuses of hostile actions and undermining democratic institutions.
Venezuela’s oil exports are a significant component of its economy, with major buyers including China, U.S., and India.
“Venezuela produced 918k b/d of crude oil in February, up from 760k b/d in 2023, while it exports around 750k b/d. As such, this move could mean a fairly sizeable tightening in the global oil balance,” ING analysts said in a note
OPEC+ set to proceed with planned May output hike
Oil-producing nations including Russia and other allies, OPEC+, is likely to stick with its plan to increase oil output by 135,000 barrels per day in May, marking a second consecutive monthly rise, Reuters reported on Tuesday citing sources.
However, the cartel last week announced that seven member nations will implement additional oil production cuts to compensate for previous overproduction.
These reductions, ranging from 189,000 to 435,000 barrels per day (bpd), are set to continue until June 2026, according to a new schedule.
This move is expected to offset the group’s planned monthly production increases scheduled to commence next month.
Russa-Ukraine peace talks in focus
Moreover, investors were assessing the development of U.S.-brokered Russia-Ukraine peace talks. The peace talks if succeeded can lead to an increased supply of Russian oil, potentially pressuring oil prices.
Media reports showed that U.S. and Russian officials concluded talks on Monday over a proposed Black Sea ceasefire between Kyiv and Moscow, part of Washington’s push for broader peace negotiations.
The discussions, seen as a step in President Donald Trump’s efforts to end the three-year war, aimed to ease maritime tensions.