Oil prices surge after US seizes tankers — Bloomberg
Photo: Oil prices began to rise after the US seized tankers (Getty Images)
Global oil prices rose slightly as traders carefully considered additional US measures to establish control over Venezuela, as well as the arrest of two sanctioned tankers, Bloomberg reports.
Brent crude traded above $60 a barrel after losing 3% in the previous two sessions, while West Texas Intermediate was around $56.
State oil company Petroleos de Venezuela SA is in talks with Washington to sell crude oil under a scheme similar to the agreement with Chevron. Under this plan, the US will have some control over PDVSA.
Vandana Hari, founder of Singapore-based market analysis firm Vanda Insights, says the reorientation of Venezuelan oil flows is likely to be a key issue in the medium term. One of the parties most affected by this will undoubtedly be China.
China was the main buyer of Venezuelan oil, the price of which fell significantly after US sanctions.
The prospect of increased exports from Venezuela has already led to a drop in Canadian crude oil prices and will add barrels to a market struggling with sufficient supply as OPEC+ and other countries increase production.
Global oil price dynamics
On January 7, global oil prices continued to fall after the US began to tighten control over Venezuela's oil industry.
A day earlier, oil prices also fell slightly amid expectations of lower demand and market concerns about the prospects for growth in Venezuelan crude oil production.
Global oil prices began to fluctuate significantly after the US conducted a special operation in Venezuela, which created uncertainty in the market regarding the future of the world's largest crude oil reserves.
