FX.co ★ Oil Rises to Over 3-Week High

West Texas Intermediate (WTI) crude oil futures have surged to nearly $69 per barrel, marking the highest level in over three weeks. This increase comes following President Trump's announcement of a proposed 25% tariff on countries purchasing oil from Venezuela, which heightens tensions with the Maduro government. This measure would significantly impact China, a major importer of Venezuelan crude oil.

Concurrently, the OPEC+ alliance is anticipated to implement a second successive production increase in May, adjusting output upwards by 135,000 barrels per day. This move comes despite ongoing efforts to enforce compensatory reductions among members who have exceeded production limits. Since 2022, the group has been reducing output by 5.85 million barrels per day but now aims to gradually phase out these curbs.

In light of these developments, an OPEC+ ministerial meeting is scheduled for April 5, where production strategies might be further refined. Notably, Russia has indicated a potential reversal of policy should market discrepancies arise.