Markets

Loss of Venezuelan oil exports won't leave huge gap in global market

Loss of Venezuelan oil exports won't leave huge gap in global market

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.

Brent crude, the global benchmark, slipped 24 cents to $61.74 a barrel by 1442 GMT.

Analysts said that USA sanctions on Venezuela had focused market attention on tighter global supplies.

US crude inventories rose by 2.5 million barrels last week and gasoline stocks also increased, the American Petroleum Institute said.

Oil prices fell sharply today as a report showed a rise in us inventories and fears about the impact of sanctions on Venezuela started to fade.

The recent downswings in the crude oil market have been highly correlated with the release of the bearish economic data. On the flip side, the next up barrier aligns at $53.53 (10-day SMA) seconded by $55.59 (2019 high Feb.4) and finally $58.00 (high Nov.18 2018).

The head of state-run Kuwait Petroleum Corp, Hashem Hashem, said on Tuesday that global oil supply could be hit this year by big reductions in exports from Venezuela.

Venezuela's opposition is opening a US fund to receive the proceeds of oil sales, a key measure to secure revenue for its effort to dislodge President Nicolas Maduro, an opposition lawmaker said on Wednesday.

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Russia is fully complying with its pledge to cut oil production gradually, Russian Energy Minister Alexander Novak said on Monday, adding that production fell by 47,000 barrels per day in January from October.

Citgo, the eighth-largest USA refiner and Venezuela's top foreign asset, is in the middle of a tug of war as the Trump administration has made aggressive moves to remove it from Maduro's control.

The impact of OPEC+'s supply curbs has been boosted by US sanctions on Venezuelan state-owned oil firm PDVSA. The surge comes shortly after Washington slapped sanctions on the Venezuelan state oil company PDVSA.

The global economic outlook and prospects for growth in fuel demand have been clouded by poor economic data in China and US-China trade tensions.

While OPEC and allied producers are slashing their output in an attempt to boost crude prices, which saw a rapid fall a year ago, the USA has been opposing the measure and vowed to continue expanding its supply.

"The market seems to be turning on renewed worries that there doesn't seem to be a lot of progress on the U.S".

US President Donald Trump last week said he would meet with Chinese President Xi Jinping, perhaps twice, in the coming weeks to try to seal a comprehensive trade deal with Beijing, but acknowledged it was not yet clear whether a deal could be reached.