Oil climbs on Venezuelan crisis despite surging US supply

How The Venezuela Political Crisis Impacts The Oil Market

Global oil markets are facing an uncertain year with slowing global growth driving less global demand for oil while the supply picture looks unclear with production cuts by OPEC and Russian Federation potentially counteracted by the growth in USA shale oil output.

Trump's recognition of Guaido as Venezuela's leader appears to be a starting point, says Risa Grais-Targow, director for Latin America at risk consultancy Eurasia Group.

Gasoline stockpiles rose by 4.1 million barrels last week, while distillate stockpiles edged down by 600,000 barrels, according to the EIA.

Quoting the Annual Statistical Bulletin of the Organization of the Oil Exporting Countries (OPEC), the "NDTV" had stated that Venezuela had 296.5 billion barrels of oil under its control.

The theme throughout the week was the weakening global economy which translates into lower demand for crude oil.

However, traders somewhat weighed down this scenario against the backdrop of the solid performance in U.S. oil output, which should be more than enough to offset occasional supply disruptions.

"The main risk for the oil market is the situation in the Middle East because this is the big area of production, not only in Saudi Arabia but in the UAE and Kuwait".

Chelsea looking for 'common ground' in Eden Hazard deployment - Gianfranco Zola
I've won it four times and if I could win it again I'd love to. "He is a very good player, but the situation changed in the last month".

Washington signaled potential new sanctions against the Venezuela's crude exports as the country descends further into political and economic turmoil. That's because Venezuela's oil shipments to China and Russian Federation are usually taken as repayment for billions of dollars in debts.

"This lower oil price environment may give Trump more cushion to implement these sanctions", Croft said. They've come to rely on the cheap and extra heavy crude found in Venezuela.

“As we shuffle into seasonal maintenance, it is no surprise to see refinery runs dropping, but this drop has been compounded by a big jump in imports to propel crude stocks higher, ” he said. Sanctions would likely accelerate those trends.

Venezuela is very reliant on the US for its oil revenue.

Tellingly, even though Venezuela's oil production has dropped sharply, the country still shipped 506,000 barrels per day to the United States in October, according to the most recent Energy Information Administration statistics. They'll have to find heavy crude elsewhere. Refineries operated at 92.9 percent of their operable capacity.

The biggest USA importers of Venezuelan crude previous year were Citgo, Valero and Chevron, according to Rystad Energy.

And Venezuela relies on United States products to keep its oil industry afloat. She noted that a ban on exporting U.S. dilutents to dilute heavy Venezuelan oil could greatly impact the nation. “In the event that a reformist government comes to power, the road back for Venezuela will be extremely arduous given the depths of the economic and humanitarian disaster.

Related news:

Hot News

isis-killer-beheading-video-story-top ISRO launches military satellite Microsat-R, student-built Kalamsat
Jan 27, 2019 - 15:44
A PSLV-C44 also carried Microsat-R that will be used to take high-resolution photos of the Earth for defence research. The launch of the Kalamsat is part of a larger program to involve Indian students with the work of ISRO .

isis-killer-beheading-video-story-top Venezuelan oil exports to US still a primary source of cash
Jan 27, 2019 - 15:44
Key to the global economic outlook will be whether the United States and China can resolve their trade disputes. RBC Europe predicted that sanctions could almost double projected output shortfalls from the troubled exporter.

isis-killer-beheading-video-story-top Top Venezuelan military official in United States defects
Jan 27, 2019 - 15:43
As I said earlier, we stand with the Venezuelan people to restore democracy and return that country to its rightful condition. No more delays, no more games. "Either you stand with the forces of freedom, or you're in league with Maduro and his mayhem".

isis-killer-beheading-video-story-top Vodafone puts Huawei rollout in core networks on hold
Jan 27, 2019 - 15:30
Carriers are becoming wary of expanding their ties to Huawei amid a US -led crackdown on the largest telecom-equipment supplier. Last week, Vodafone followed BT in suspending the use of Huawei kit in its core network.

isis-killer-beheading-video-story-top Ronda Rousey could leave WWE in a few months
Jan 26, 2019 - 03:59
In a tearful statement on a video she posted on YouTube on November 22 a year ago , she acknowledging struggling with this choice. The Wrestling Observer Newsletter reports that Ronda Rousey forgot to bring her RAW Women's Title to the show this week.

isis-killer-beheading-video-story-top Noodle firm drops ‘whitewashed’ ad of Japanese tennis star Naomi Osaka
Jan 26, 2019 - 03:47
Nissin's ad was based on a manga and animation series called " The Prince of Tennis ", created by artist Takeshi Konomi . Japan is still a very homogenized society where biracial people are referred to as "hafuu", and many hoped Osaka's U.S.

isis-killer-beheading-video-story-top FC Barcelona attacker wants to join Arsenal this month
Jan 26, 2019 - 03:35
Arsenal have been wanting to sign Denis Suarez from Barcelona for some time now but it looks like the talks have hit dead waters. Unai Emery's men face a huge test later today as they take on Manchester United in the fourth round of the FA Cup .

isis-killer-beheading-video-story-top NC 'Emergency': 3 Kids Went Out to Play, 2 Returned
Jan 26, 2019 - 03:01
The sheriff's office has also asked people to check their property , cars and storage sheds for Casey. Police say Hathaway could have just wandered away, but they aren't ruling anything out.

isis-killer-beheading-video-story-top Saints’ Benjamin Watson blasts Roger Goodell in open letter
Jan 26, 2019 - 02:55
If the penalty had been called, the Saints could have run most of the time off the clock to set up a game-winning field goal. We all realize that football is an imperfect game, played, coached and officiated by imperfect people, "Watson tweeted".

isis-killer-beheading-video-story-top Senate Poised to Vote on Bills to End Shutdown
Jan 26, 2019 - 02:30
Trump has repeatedly called for $5.7 billion in border wall funding, a demand consistently rejected by Democrats including Pelosi. Polls have shown that the public is blaming Trump for the shutdown and his approval numbers have sunk as the impasse drags on.

isis-killer-beheading-video-story-top Mark Lawrenson states his prediction for Arsenal v Man United
Jan 26, 2019 - 01:58
The creative maestro has been tearing up English football years during his time with first Chelsea and now Manchester United . And the FA Cup represents an excellent opportunity for Solskjaer to deliver some silverware for the Manchester United board.

isis-killer-beheading-video-story-top Mickelson shoots 68 to take 2-shot lead into weekend
Jan 23, 2019 - 10:46
On Sunday, he pocketed a cool $1,062,000. "It was a huge thrill to play with Phil", Long said. Hadwin had a 66 at La Quinta, the course where the Canadian shot 59 two years ago.

isis-killer-beheading-video-story-top Cristiano Ronaldo Scores Tax Fine of almost $21.6 Million for Fraud
Jan 23, 2019 - 10:35
The Juventus forward arrived in a black van, walked up some stairs leading to the court house and stopped to sign an autograph. The court appearance lasted around 40 minutes as the deal was officially presented to the judge, who has since sentenced him.

isis-killer-beheading-video-story-top Plane carrying Cardiff City's Sala goes missing over English Channel
Jan 23, 2019 - 10:28
He said in an in-house TV interview: "You could see from his face he is so, so happy to be here and ready to start". At Cardiff City's home stadium, fans lay shirts with messages including "pray for Sala " and even " RIP ".

isis-killer-beheading-video-story-top China's Growth Slumps to Lowest Since 1990
Jan 23, 2019 - 10:11
India, the world's second most populous nation, has also been experiencing slower population growth. Retail sales growth has also fallen to its lowest level in more than a decade.