Oil has risen 2.5% after the introduction of sanctions against Venezuela
In the second half of trading Tuesday, oil prices were determined with more precise motion vector and were able to break through to the North. Brent is slightly raised above the level of 61 dollar for barrel, and at the end of the trading day gained almost 2.5%, nearly recouping the losses of the previous day.
Many refer to the fact that the higher prices have pushed sanctions against Venezuela. Perhaps, had taken place pending the market’s reaction to another act of aggression of Washington in foreign policy. However, a break rather associated with an improvement in General attitude to risk. Asian markets took the baton from wall street, and in the morning the barrel is trading also with a moderate upward bias.
The impact of sanctions as such on the world market will be broadly restricted due to the fact that America is by analogy with the Iranian history have made some exceptions for importers of Venezuelan oil, including several local refineries and a major European buyers.
Meanwhile, the API reported an increase of crude oil reserves by 2 million barrels last week. The result was more modest forecast of +3 million barrels. Gasoline inventories increased by 2.4 million, while distillate stocks fell by 2 million barrels. In General, the report is regarded as neutral and has not had a significant impact on the market.
Today, Brent can move in any direction, depending on the nature of the signals that will come from the negotiations, the U.S. and China. Energy Ministry data, if not strikingly differ from the assessment of the API will remain almost unnoticed, because the market will be focused to wait for the outcome of the fed meeting and monitor the reaction of the stock markets and the dollar. If Brent this time will be able to defend the 60 level, the technical picture of the market a bit.
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