Prices for oil are on the rise after U.S. President Donald Trump said that America will impose secondary tariffs of 25% on any country that buys crude and natural gas from Venezuela.
Earlier in March, the Trump administration gave U.S. oil major Chevron (CVX) until April 3 to wind down its operations in the South American country. The U.S. government has since said that it is considering an extension to Chevron’s license while weighing the possibility of tariffs on buyers of Venezuelan oil.
News of the U.S. action against Venezuela has sent the price of West Texas Intermediate (WTI) crude oil, the U.S. standard, up about 1% to $69.84 a barrel. Brent crude oil, the international standard, has risen nearly 2% to trade at $73.69 a barrel.
Energy Battle
The skirmish over oil from Venezuela comes as Trump claims that the South American country has sent criminals, including gangs members, to the U.S. Venezuela’s government denies the charges and has appealed to the Trump administration on the issue.
Despite the current political battle, Venezuela was one of the top foreign suppliers of oil to the U.S. in 2024, according to American Commerce Department. In total, the U.S. bought $5.6 billion of crude oil and natural gas from Venezuela last year.
Rising oil prices also benefit major U.S. energy companies such as Exxon Mobil (XOM) and Occidental Petroleum (OXY).
Is CVX Stock a Buy?
The stock of Chevron, one of the leading U.S. oil majors, has a consensus Strong Buy rating among 14 Wall Street analysts. That rating is based on 11 Buy and three Hold recommendations assigned in the past three months. The average CVX price target of $176.64 implies 5.34% upside from current levels.
