The price of oil was lifted up by the recent tightening of crude market in the stateside on Monday. The possibilities that U.S. will press sanctions against Venezuela also weighed on prices.
Ever since the last meeting of leading oil producers by the Organization of the Petroleum Exporting Countries and non-members to tackle about the possible measures on curbing the already bloated market, oil futures rose as high as 10 percent. OANDA’s analyst Jeffrey Halley said that stockpiles in the U.S. are suggesting immense drawdowns and Saudi Arabia looks like determined on playing its role as the swing producer in the world.
U.S. West Texas Intermediate (WTI) futures advanced by 0.3 percent or 16 cents to trade at $49.87 a barrel. The entire curve of WTI is close to retreating over the $50 per barrel level with September and October to only hit that handle. International benchmark Brent crude futures rose more than 0.6 percent or 30 cents to finish at $52.82 a barrel on the day.
U.S. is currently seeing on imposing sanctions to the vital oil sector in Venezuela as a response to the election of a constitutional super-body which Washington criticized as a “sham” vote last Sunday. However, traders are suggesting the biggest price supporter was tightening the oil market in U.S. as of now.
Rivkin Securities’ analyst William O'Loughlin said the increases from the oil sector were strengthened in large part by the massive drawdowns in U.S. stockpiles on the previous weeks, adding that the efforts of OPEC and other producers to stabilize the market is already working if this trend continues.