Venezuelan opposition readies US fund to receive oil revenue

Venezuelan opposition readies US fund to receive oil revenue

However, U.S. crude stocks rose last week even as refineries boosted output, while gasoline and distillate stocks increased, data from industry group the American Petroleum Institute showed on Tuesday.

Stocks gained by 1.3 million barrels in the week ended February 1, compared with analysts' expectations for an increase of 2.2 million barrels.

The producers known as OPEC+ began cutting production by 1.2 million barrels per day from last month to avert a new supply glut and OPEC has delivered nearly three-quarters of its pledged cutback already, according to a Reuters survey.

International Brent crude oil futures had yet to trade.

The worry was that the sanctions, targeting specifically PDVSA, will result in a shortage of heavy crude for USA refineries on the Gulf Coast, but in actuality, there seems to be sufficient spare production capacity around the world to fill any supply gap resulting from the latest developments in and around Venezuela.

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

The sanctions will sharply limit oil transactions between Venezuela and other countries and are similar to but slightly less extensive than those imposed on Iran previous year, experts said on Friday after looking at details posted by the Treasury Department. Production last month declined to 11.38 million barrels per day (bpd), but that was only down by 35,000 bpd from its October 2018 level that is the baseline for the pact.


Earlier, oil price came under pressure following weekly data showing rise in United States stocks. Venezuela, an OPEC member, is like Iran and Libya exempt from making voluntary curbs under the deal. "That said, if the other OPEC countries fail to offset this outage, the oil market could quickly become undersupplied, driving the price up".

The price of United States crude continues to rise and the outlook is still constructive on tight supplies and concerns about Venezuelan output.

Also dampening market sentiment still were worries about weaker global economic growth and the US-China trade dispute.

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.

With a nervous market, traders are focused on the U.S. State of the Union address by President Donald Trump.

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

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