Power Struggle in Venezuela to Spill Over to Energy Market

The escalating power struggle in Venezuela between the sitting president, Nicolás Maduro, and the opposition party, led by Juan Guaidó, is rattling the oil markets.

Prices for the global benchmark Brent crude oil and the US West Texas Intermediate rose slightly on Thursday, at $61 a barrel and $53 a barrel, respectively, but oil-market participants are nervously watching the outcome of the tug-of-war.

West Texas Intermediate graph

“This Venezuelan situation could potentially turn into something big,” said Daniel Pavilonis, senior market strategist with RJO Futures.

Tensions ratcheted up after the Trump administration recognized Guaidó as interim president on Wednesday and called Maduro’s government illegitimate.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza