US sanctions on Venezuelan company boosts oil
But price rises are capped by ample global supply and signs of a slowing Asian economy
London — Oil prices rose on Tuesday after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a move that may curb the Opec member’s crude exports, but price rises were capped by ample global supply and signs of a slowing Asian economy. International Brent crude oil futures were up 61c at $60.54 a barrel by 9.41am GMT. US West Texas Intermediate (WTI) crude futures were up 48c at $52.47 a barrel. Venezuela has the world’s biggest proven oil reserves, but its potential has not been realised due to a lack of investment. The country is also a member of producer cartel Opec, which is implementing a supply cut deal. “The Latin American country is predominantly the producer of heavier crude, exactly what [US Gulf] refiners are thirsty for,” PVM said in a note. “They will now have to turn elsewhere [possibly to Mexico, Saudi Arabia and Iraq] to satisfy their needs for this type of crude, which would inevitably lead to a price spike.” Venezuela’s exports fell to little ...
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