The price of oil: Crisis in Venezuela and the anti-Iranian sanctions have limited the fall
Oil prices fell on Wednesday after a rise in stocks of raw materials in the US and on concerns about falling global demand. However the depreciation was restricted due to the growing crisis in Venezuela and the tightening of U.S. sanctions against Iran.
The price of Brent crude oil decreased by 0.15% to 71,95 dollars per barrel, while futures for U.S. crude oil fell 0.6 % to $ 63,51.
On Tuesday, the American petroleum Institute (API) reported an unexpected increase of crude oil reserves by 6.8 million barrels for the week ended 26 April, while analysts expected an increase by only 2.09 million barrels.
Financial markets are also closely watching recent events in Venezuela amid mass protests against the government. Hundreds of Venezuelans United on Tuesday against the incumbent President after the opposition leader Juan Guido called for “armed rebellion” and overthrow of Nicolas Maduro.
In turn, many experts fear that this could lead to the escalation of violence and further disruption of oil supplies and rising prices on the world market.
Also, once the US sanctions against imports of Iranian oil come into force tomorrow, may 2, and it is not yet clear whether they will be extended in the future to restrict the supply of Iranian oil for a long period.
The price of oil today remains at the heart of geopolitical risks, however, they limit the drop in prices and is able to support investors even in a period of declining demand in the world.
Analyst of commodity markets,
Stock Markets Group