Oil prices rose on Wednesday, when concerns about the most strict global supply grew after the American threat of definitions of countries that buy Venezuelan crude and a greater decrease than expected in the American crude stock.
Brent crude futures rose 49 cents to $ 73.51 a barrel, while US crude in West Texas Intermediate increased by 48 cents to $ 69.48. Both standards reached their highest levels in three weeks during the previous session.
The Venezuelan Oil Trade stopped to China on Tuesday after US President Donald Trump signed a 25 % order that allows imports from any country to buy Venezuelan crude. This step added fresh uncertainty to global oil flows a few days after Washington imposed sanctions on China’s imports of Iranian oil.
China is waiting for the best oil buyer in Venezuela, now more clarification on how to apply customs tariffs.
Last week, Washington also expanded sanctions on Iranian oil sales, targeting the independent Chinese refining refineries and ships participating in the transport of Iranian crude. These measures contributed to tightening the global oil market, as traders hold the impact of display methods.
Meanwhile, the American Petroleum Institute data showed us that raw stocks have decreased by 4.6 million barrels last week, exceeding 1 million barrels decreasing and indicating strong demand. The official US government report on crude stocks is expected to be later on Wednesday.
Oil prices gains were partially covered through an agreement between the United States, Ukraine and Russia to stop attacks at sea and energy infrastructure, with Washington to lift certain sanctions on Moscow. Both Kiev and Moscow have stated that they will rely on Washington to impose the terms of the agreement, with doubts about the commitment of the other side.
Despite the increase in prices, fears remain more than the possible economic slowdown resulting from the Trump tariff, which can limit the gains of more oil market.
