Oil Rises After US Sanctions on Venezuela Constrain Supply

Oil prices rose more than 1 percent on Wednesday, boosted by concerns about supply disruptions following U.S. sanctions on Venezuela’s oil industry but pegged back by uncertainty over the global economy.

Brent crude graph

U.S. West Texas Intermediate (WTI) crude futures were at $54.03 per barrel by 1450 GMT, up 72 cents or 1.35 percent.

International Brent crude oil futures were at $61.96 per barrel, up 64 cents or a little over 1 percent.

Washington announced export sanctions against Petroleos de Venezuela SA (PDVSA) on Monday, limiting transactions between U.S. companies and the state-owned oil firm.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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