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Oil holds losses near $52 as Venezuela sanctions shrugged off

Oil has advanced 14 percent this year as the Organization of Petroleum Exporting Countries and allies curbed output to ease glut concerns. Nevertheless, price gains have been capped by record American output, expanding stockpiles and the US-China trade war.

business Updated: Jan 29, 2019 08:41 IST
Sharon Cho
Sharon Cho
Bloomberg
Oil,crude oil,oil prices
An oil tanker is seen at Jose refinery cargo terminal in Venezuela. Oil held its biggest loss in a month as renewed concern over slowing global growth largely outweighed US sanctions against Venezuela’s state oil company.(Reuters File Photo)

Oil held its biggest loss in a month as renewed concern over slowing global growth largely outweighed US sanctions against Venezuela’s state oil company.

Futures rose 0.4 percent in New York, after dropping 3.2 percent in the previous session. The Trump administration issued new sanctions on Venezuela’s PDVSA that effectively block the regime of President Nicolas Maduro from exporting crude to the US On Monday, Microchip-maker Nvidia Corp. and heavy-equipment giant Caterpillar Inc. warned of slowing growth in China and elsewhere.

“The issues surrounding the Venezuelan situation have already been priced into the oil market to some extent,” said Sungchil Will Yun, a Seoul-based commodities analyst at HI Investment & Futures Corp. “Expectations for future demand is becoming a worry.”

Oil has advanced 14 percent this year as the Organization of Petroleum Exporting Countries and allies curbed output to ease glut concerns. Nevertheless, price gains have been capped by record American output, expanding stockpiles and the US-China trade war. Talks between the world’s two biggest economies later this week may provide the catalyst for crude to break out of its recent tight trading range.

West Texas Intermediate crude for March delivery rose 19 cents to $52.18 a barrel on the New York Mercantile Exchange at 9:11 a.m. in Singapore. The contract fell $1.70 to close at $51.99 a barrel on Monday.

Brent for March settlement declined 10 cents to $59.83. It broke below $60 for the first time in almost two weeks on Monday, dropping $1.71 to $59.93 on the London-based ICE Futures Europe exchange. The global benchmark crude was at a $7.94 premium to WTI.

First Published: Jan 29, 2019 08:37 IST