Investing.com-- Oil prices edged up in European trading on Thursday, bouncing back from a two-month low logged in the previous session, as investors assessed a move by U.S. President Donald Trump to axe a license given to Chevron to operate in Venezuela.

Brent oil futures rose 1.6% to $73.22 per barrel as of 09:18 ET (14:18 GMT), while West Texas Intermediate crude futures expiring in March gained 1.9% to $69.93 per barrel.

Trump revokes Chevron ’s license to operate in Venezuela

Trump announced on Wednesday that he had revoked Chevron’s (NYSE: CVX ) license to operate in Venezuela, citing President Nicolás Maduro’s failure to advance electoral reforms and expedite the return of deported migrants.

This decision, effective on March 1, halts Chevron’s export of approximately 240,000 barrels per day of Venezuelan crude, over a quarter of the country’s oil output.

The move contributed to a rise in oil prices, markets anticipating a possible tightening in crude supplies.

U.S. oil market sees crude draw, refined product surplus - EIA

Elsewhere, the U.S. Energy Information Administration (EIA) released its weekly report on Wednesday.

For the week ending February 21, U.S. crude oil inventories decreased by 2.3 million barrels, in contrast with analysts’ expectations of a 2.6 million barrel increase, suggesting a tighter supply scenario.

Refinery inputs rose by 317,000 barrels per day, with refineries operating at 86.5% capacity, indicating an uptick in refining activity.

Despite the reduction in crude inventories, the report also highlighted an unexpected build in refined product stocks. Gasoline inventories increased by 400,000 barrels to 248.3 million barrels, while distillate fuel stocks saw a significant rise of 3.9 million barrels, reaching 120.5 million barrels.

Trump’s tariff threats, potential Russia-Ukraine peace talks cap gains

Trump reaffirmed plans to impose tariffs on energy imports from Mexico and Canada, with Canadian products facing a 10% duty and Mexican imports a 25% tariff.

While the implementation date remains uncertain, the move has added volatility to oil markets. He also threatened tariffs on European Union goods, heightening investor concerns.

(Scott Kanowsky contributed reporting.)