Share

Oil near $50 as traders await US reaction to Venezuelan vote

Johannesburg - Oil traded near $50 a barrel in New York as efforts by Venezuela’s president to seize more power raised speculation the US could step up sanctions.

Futures were little changed after surging 8.6% last week. The US is said to be considering increasing sanctions against Venezuela’s oil industry, the Wall Street Journal reported, citing people familiar with the deliberations. OPEC and non-OPEC producers will convene in Abu Dhabi next week to discuss why some nations aren’t complying with output cuts.

Oil gained last week to rise above its 200-day moving average for the first time since May as concerns eased that efforts by the Organisation of Petroleum Exporting Countries and its allies to curb output will be offset by rising production elsewhere.

Police in Venezuela clashed with demonstrators after a vote Sunday to elect members of a new legislative body that President Nicolas Maduro insisted is needed to restore order after months of protests.

“Depending on how the Trump administration decides to proceed going forward, of course that could have implications,” including potentially blocking US imports of Venezuelan crude, said Harry Tchilinguirian, a commodities analyst at BNP Paribas SA in London. “It’s very unclear at this stage what course the US administration will follow.”

The US buys about a third of Venezuela’s crude production and is the main buyer that pays in cash.

West Texas Intermediate for September delivery slipped 8 cents to $49.63 a barrel on the New York Mercantile Exchange at 14:19. Prices climbed $3.94 last week to close at $49.71 on Friday, the highest settlement since May 26.

Brent for September settlement, which expires Monday, declined 1c to $52.51 a barrel on the London-based ICE Futures Europe exchange, after adding 9.3% last week. The global benchmark traded at a premium of $2.92 to WTI. The more-actively traded October contract dropped 2c to $52.20.

Representatives of some OPEC and non-OPEC nations will meet in the United Arab Emirates capital on August 7 to August 8 to discuss why some of them aren’t fully implementing their commitment to cut output, according to an OPEC statement.

Some will argue that the independent sources used by OPEC to assess compliance overestimate their production, according to two people familiar with the matter.

Oil-market news 

Iran is optimistic that crude stockpiles will reach a “more favorable” level, the nation’s Oil Ministry news service Shana reported, citing Oil Minister Bijan Zanganeh. Money managers increased their bullish WTI oil crude bets to a three-month high, according to weekly US Commodity Futures Trading Commission data.

Bets on ICE Brent crude climbed by 26 919 net-long positions to 288 571, weekly ICE Futures Europe data on futures and options show.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders