Trump is shaking up energy markets again. The U.S. president just announced a 25% tariff on any country that buys oil or gas from Venezuela, with the new measure kicking in after April 2. According to The Wall Street Journal, the move is part of a wider effort to cut off funding to President Nicolás Maduro’s regime. Countries like China, which still import Venezuelan crude, could take a direct hit. Meanwhile, Chevron (CVX)—one of the last U.S. firms operating in the country—has been granted a license extension, which keeps its ties to Venezuela alive a little longer.
In a Truth Social post, Trump accused Venezuela of sending “tens of thousands of high-level and other criminals” into the U.S., calling the action a “secondary tariff.” Brent crude jumped 1.3% on the news, with analysts warning higher prices at the pump may follow.
Chevron Gets a Temporary Green Light
That extension, confirmed by Reuters, lets Chevron continue running its joint ventures with Venezuela’s state-run oil company PDVSA until May 27. It’s a crucial exception. Chevron had previously exported around 200,000 barrels a day under the waiver. Though the company declined to comment, analysts say the extension helps avoid a sharper short-term shock to supply.
With most Western firms long gone, Chevron has remained one of the few American players on the ground. And for now, it looks like Washington wants to keep it that way.
Investors React to Oil Risk and Chevron’s Position
Experts like Rapidan Energy’s Fernando Ferreira told the Financial Times this is uncharted territory. “We’ve never seen secondary tariffs before,” he said, warning countries may self-sanction rather than risk losing U.S. trade access altogether. China’s foreign ministry responded coolly, saying the U.S. should “do more things that are beneficial to the peace, stability, and development of Venezuela and other countries.”
Oil prices ticked up slightly on the news, with futures up nearly 1.5%. Analysts believe Chevron’s continued presence could help soften any supply shocks. Meanwhile, Chevron’s stock saw a modest lift as investors bet it can keep navigating the geopolitical minefield—for now.
Is Chevron a Good Stock to Buy Now?
Analysts remain optimistic about CVX stock, with a Strong Buy consensus rating based on 11 Buys and three Holds. Over the past year, CVX has increased by 10%, and the average CVX price target of $176.64 implies an upside potential of 7% from current levels.
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