Oil prices increased, during the early Thursday’s trading, after it touched its lowest levels in two months after US President Donald Trump announced the cancellation of a license that was granted to Chevron to work in Venezuela, which may lead to a shrinking crude supply.
Market
Brent crude futures rose 19 cents, equivalent to 0.3 percent to $ 72.72 a barrel by 0154 GMT. US West Texas Intermediate crude futures rose 16 cents, or 0.2 percent, to $ 68.78 a barrel, according to Reuters data.
Both of the two years had reached when the Wednesday session settled their lowest levels since the tenth of December, due to a sudden increase in US fuel stocks, in an indication of weak demand, as well as hopes in a possible peace agreement between Russia and Ukraine.
High US fuel stocks
The US Energy Information Administration said that gasoline stocks and distillation products in the United States recorded sudden increases last week, although crude oil stocks decreased unexpectedly as refining activities increased.
The US Energy Information Administration stated that crude stocks fell 2.3 million barrels to 430.2 million a week, compared to analysts’ expectations in a Reuters poll, an increase of 2.6 million.
The administration stated that crude stocks at the delivery center in Kashing, Oklahoma, rose 1.3 million barrels during the week.
She said that gasoline stocks in the United States climbed 0.4 million barrels during the week to 248.3 million barrels, compared to analysts’ expectations for a Reuters poll, which decreased 0.8 million barrels.
The administration data showed the increase in the distillation products, which include diesel and heating oil, 3.9 million barrels to 120.5 million, compared to expectations of a decrease of 1.5 million.
She added that the net imports of the United States of crude rose 292 thousand barrels per day during the week.
Ending the oil agreement with Venezuela
US President Donald Trump announced on Wednesday that the statement issued by his country’s government to allow the giant energy company Chevron to pump and export Venezuelan oil will be ended this week, to cut off a financial lifeline for Karacas.
Chevron exports about 240 thousand barrels per day of crude from its unit in Venezuela, that is, more than a quarter of the country’s production of the entire oil. End of the license means that Chevron will no longer be able to export Venezuelan crude.
“The reports related to Venezuela caused a state of apostasy after the last wave of sale amid the ceasefire talks between Russia and Ukraine,” said Hiroyuki Kikokawa, head of the Nissan Squares Unit of Squares.
Market participants are still focusing on the Russian -Ukrainian peace talks that Trump is holding. Trump said that Volodimir Zellinski will visit Washington on Friday to sign an agreement on rare ground minerals, while the Ukrainian president said the success of the agreement would depend on these talks and the continuation of American aid.
