Oil Under Pressure, US Takes Over Venezuelan Oil
Oil prices continued to weaken following Donald Trump's statement that Venezuela would hand over tens of millions of barrels of crude oil to the United States. Brent oil fell to near US$60 per barrel, while WTI hovered around US$56, extending its decline since the beginning of the year.
Trump stated that up to 50 million barrels of high-quality oil from Venezuela would be handed over to the US for sale, with the proceeds reportedly benefiting both countries. This move is seen as Washington's attempt to strengthen control over Venezuela's oil industry while reducing the risk of supply disruptions due to limited storage in the country.
Additional pressure comes from reports that the Trump administration is asking Venezuela to partner exclusively with the US for oil sales and reduce ties with China, Russia, Iran, and Cuba. If realized, this policy would represent a major political shift for Venezuela, which has historically been close to these countries.
Fundamentally, the oil market remains overshadowed by bearish sentiment. Concerns about a global oversupply remain strong, compounded by uncertainty following the fall of Nicolás Maduro. ING analysts believe that the US move actually reduces the risk of supply disruptions, further depressing prices.
On the data front, the American Petroleum Institute report showed a decline in US crude oil inventories of 2.8 million barrels, but gasoline and distillate inventories actually rose by more than 4 million barrels. The market now awaits official US government data and further geopolitical developments, including a potential security agreement for Ukraine that could pave the way for Russian oil exports and increase pressure on global energy markets. (asd)
Source: Newsmaker.id
