Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Crude oil prices reacted to US President Donald Trump’s threats to impose tariffs on countries buying Venezuela’s oil, leading to an increase in prices this week.

Crude prices surged on Tuesday, March 25, 2025, following the announcement as traders predicted a supply cut.

Trump has been the biggest bear this week, leading to bullish sentiment, experts say.

According to reports, US sanctions on Venezuela coincided with a one-month extension of Chevron’s plan to close operations in that country.

With buyers' caution of less heavy oil in the market, ICE Brent futures rose above $73 per barrel.

The report disclosed that the White House introduced a 25% tariff for any country buying oil and gas from Venezuela in case of any trade with the US, affecting China.

Analysts say the Asian country accounts for 55% of Venezuela’s 500,000 barrels per day exports.

As of Wednesday, March 26, 2025, Brent crude sold at $73.27, while Western Texas Intermediate (WTI) increased to $69.26.

The rise in crude prices came after the commodity declined in price.

The US President has continuously championed that the Organisation of the Petroleum Exporting Countries (OPEC) cut crude prices, saying it contributed to the war in Ukraine.

However, experts predict that the latest decision might go against OPEC’s plan to cut oil prices.

A report by Reuters says that Trump’s latest policy relieves Chevron of some pressure to quickly quit the country after the US Treasury Department gave it 30 days to shut down operations.

Trump initially issued the wind-down order after accusing the Venezuelan President, Nicolas Maduro, of not improving on electoral reforms and migrant returns.

The development comes as Dangote and other modular refineries in Nigeria may spend about $8.56 billion to import about 122,400,000 barrels of crude oil in six months to operate at full capacity.

The development means that the refineries may spend about $1.43 billion monthly on crude imports into Nigeria amid the collapse of the naira-for-crude deal between the refineries and the Nigerian government.

The mega Dangote Refinery may spend the amount over the uncertainty surrounding the Domestic Crude Supply Obligation of the Nigerian government.

Legit.ng earlier reported that the naira-for-crude oil committee failed to meet on Monday, March 24, 2025, with other stakeholders to discuss the future of the deal.

The 650,000 bpd-capacity refinery has repeatedly disclosed that it was importing crude and would continue to do so as it hopes to ramp up production.

Experts have said that with the collapse of the naira-for-crude deal, the refinery will rely more on imported crude to meet its production needs.

Punch reports that Edo Refinery plans to import crude to meet its refining needs.

The 30,000 bpd-capacity refinery has sought to purchase crude from a US-based crude seller.

Findings show that while other modular refineries were planning to purchase crude, the Dangote and Edo refineries would need about 680,000 barrels per day to operate optimally.

The figure translates to 20.4 million barrels in 30 days and 122.4 million barrels in six months.

At the average cost of $70 per barrel for Brent crude, the two facilities may spend about $8.56 billion in six months to import the commodity.

Legit.ng earlier reported that Dangote Refinery is increasing its global market share, with three cargoes amounting to about 130 million litres reportedly set for export to Saudi Arabia.

The development follows the facility’s recent export to the US, where it sold over two million barrels of JetA1, known as aviation or jet fuel, showing its growing dominance and acceptance in the international energy market.

Ship-tracking data from Kepler shows that six vessels with about 1.7 million barrels of aviation fuel from the Nigerian-based refinery arrived at US ports in March.

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Source: Legit.ng