Oil rising after US sanctions on Venezuela

WTI crude oil today rose to nearly $ 54 a barrel today after the White House announced new sanctions against Venezuelan state power companies, increasing the risk of supply to the market.

The Trump administration imposed sanctions on Petroles de Venezuela SA, which effectively blocked the state’s intention to export oil to the United States. This followed hours after Saudi Arabia’s statement, which demanded greater cuts in February’s production as part of a deal with its allies to balance the market. The BRENT variety rose to $ 60.90 a barrel.

Sanctions will change current supply flows in the world. Refiners in China and India are the only ones to process oil from Venezuela outside the US.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

 Trader Martin Nikolov

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