What is the news?
US President Donald Trump has said that oil will be sent to America from Venezuela. After this, a decline in the prices of crude oil has been seen even today. Investors got an indication that the supply of oil in the market may increase in the coming time, which will keep the prices under pressure. Due to this apprehension, selling increased during trading and the oil market appeared to be under pressure, due to which traders became alert.
Latest prices of Brent and WTI
According to the data, today US West Texas Intermediate crude fell 1.37 percent to $ 56.35 per barrel. At the same time, a decline of about 1 percent was recorded in Brent crude futures and it came at $ 60.09 per barrel. Even in the last trading session, both the benchmark prices had fallen by more than a dollar, due to which an atmosphere of weakness was already created in the market and confidence has decreased.
Reason for increase in supply from Venezuela
The main reason for the decline in the oil market is the developments related to Venezuela. It has come to light that America has received 30 to 50 million barrels of sanctioned oil. This indicates that additional oil may enter the global market and supply pressure may increase. For this reason investors are afraid of oversupply. This concern seems to be deepening in the environment of weak demand.
What will you keep an eye on next?
Now the market is eyeing the impact of this big oil deal between America and Venezuela. It is also being seen at what speed the oil shipment takes place and how much the supply increases further. Along with this, government data related to America’s oil reserves is about to come, which may clarify the direction of prices and give signals to investors.
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