Oil price surges amid OPEC cuts & U.S. sanctions against Venezuela

Oil price surges amid OPEC cuts & U.S. sanctions against Venezuela

The Organisation of the Petroleum Exporting Countries, Russia and other non-OPEC producers - an alliance known as OPEC+ - agreed in December to reduce supply by 1.2 million bpd from January 1.

USA crude oil inventories C-STK-T-EIA climbed by 1.3 million barrels in the week that ended February 1, to 447.21 million barrels, data from the Energy Information Administration (EIA) showed on Wednesday.

Brent crude, the global benchmark, slipped 49 cents to $61.49 a barrel as of 1053 GMT.

"The price has yet to react in any noticeable way", Fritsch said of the sanctions.

International Brent crude oil futures were at $62.72 a barrel, also up 21 cents or 0.4 percent, after closing down 0.4 percent in the previous session.

Still, some analysts were relieved that United States crude oil inventories only rose by 1.3 million barrels in the week to February 1, according to the EIA, compared with expectations for an increase of 2.2 million barrels. "Additionally, the builds in crude (+1.3 million barrels) and gasoline stocks (+0.5 million barrels) were less than anticipated".

"This is already quite advanced, I hope that next week it can be announced by our representative in the United States", Paparoni said, in reference to Venezuelan opposition envoy Carlos Vecchio.

Super Bowl Odds: Vegas Makes Chiefs Favorites to Win Super Bowl LIV
Tom Brady is the oldest quarterback to win a Super Bowl at 41 years old, while Bill Belichick is the oldest coach at 66. The Super Bowl has drawn at least 100 million viewers for the last nine years.

Venezuela, like fellow OPEC members Iran and Libya, was exempt from production curbs under the OPEC+ deal on expectations that its output faced involuntary downward pressure in 2019.

The key story supporting the market and driving the price action is the OPEC-led production cuts. Meanwhile US WTI crude rose to $55.53.

The report revealed that there have been encouraging signs in trade talks between the U.S. and China over tariffs recently, and any agreement between the two countries could provide upside to oil demand, and indeed oil prices, going forward.

Though the United States published robust jobs data last week, global markets remain nervous after China reported the lowest annual economic growth in almost 30 years in January. OPEC and associated partners agreed to cut 1.2 million barrels per day with OPEC being responsible for 800,000 barrels.

The fund would receive income accrued by state-run oil firm PDVSA's U.S. unit Citgo Petroleum Corp since last month, when U.S. President Donald Trump recognized opposition leader Juan Guaido as Venezuela's legitimate head of state, Carlos Paparoni said in an interview.

Traders are still anxious about the global economic slowdown especially because of the uncertainty surrounding the U.S.

Related Articles