Oil prices extended their gains for a fifth straight session on Tuesday, driven by concerns over potential supply constraints following fresh U.S. tariffs on nations importing Venezuelan crude.

However, the upward momentum was tempered by reports that OPEC+ intends to proceed with an output hike in May.

Brent crude futures edged up 46 cents, or 0.6%, to trade at $73.46 per barrel by 1023 GMT, while U.S. West Texas Intermediate (WTI) crude rose by 41 cents, or 0.6%, to reach $69.52 per barrel. The benchmarks had already posted gains exceeding 1% in the previous session.

The price rally came after U.S. President Donald Trump announced a 25% tariff on countries purchasing Venezuelan oil. Venezuela, whose economy heavily relies on crude exports, counts China—already facing multiple U.S. tariffs—as its largest buyer.

"Oil firmed up on the latest tariff moves by the U.S., although gains were capped by reports of OPEC+ moving to increase output further in May," analysts at Panmure Liberum noted.

In a related development, the U.S. administration on Monday extended the deadline for Chevron to wind down its operations in Venezuela until May 27. According to ANZ analysts, the withdrawal of Chevron’s licence to operate in the country could lead to a reduction in output by approximately 200,000 barrels per day.

Meanwhile, sources told Reuters that the OPEC+ alliance—comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia—remains committed to its plan of increasing oil production in May.

The group is also expected to enforce output cuts on certain members to offset prior overproduction.

Last week, Washington imposed additional sanctions targeting Iran’s oil exports, further adding to market uncertainty.

Trump also hinted at upcoming automobile tariffs but suggested that not all levies would take effect on April 2, with some nations potentially receiving exemptions—a move that eased investor concerns on Wall Street.