By: Swarnalata
Published on: May 28, 2025
Oil Prices
The recent U.S. directive barring Chevron from exporting Venezuelan crude has introduced potential supply constraints, pushing oil prices slightly higher. Brent crude rose 0.4% to $63.85 per barrel, and WTI crude gained 0.8% to $61.38 per barrel. The ban, part of a new authorization by the Trump administration, restricts Chevron’s operations in Venezuela, potentially reducing available crude for U.S. refiners. This could increase reliance on Middle Eastern crude, as noted by Westpac’s Robert Rennie. However, the market’s upward momentum is capped by expectations of higher OPEC+ production, with a potential July output hike under discussion at their upcoming meeting. Non-compliance with production quotas by OPEC members and Trump’s trade policies further cloud the demand outlook, contributing to expectations of an oversupplied market in the second half of 2025.
Gold Prices
Gold prices stabilized, with futures up 0.2% to $3,308.30 per ounce and spot gold up 0.6% to $3,320.70 per ounce, as dip buyers stepped in after prices dipped below $3,300. Easing U.S.-EU trade tensions have limited gold’s upside, as improved trade relations reduce its safe-haven appeal. Investors are now focused on the upcoming U.S. core PCE inflation data for April, due Friday, which could influence the Federal Reserve’s interest rate decisions. With the Fed maintaining rates at 4.25%–4.50%, the data may provide clarity on future policy moves, especially amid economic uncertainties tied to Trump’s tariff policies.
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