By Srinivas Chowdary Sunkara // petrobazaar // 30th January, 2019.
Brent rose $1.39 to $61.32 and WTI gained $1.32 to $53.31 a barrel last night. Both the crude markers surged above 2 percent negating previous session losses. Market found U.S sanctions on Venezuela to claw back earlier losses. Washington imposed sanctions on PDVSA, A state owned oil company of Venezuela, to reduce exports to U.S. Venezuela is a Latin American Country and is one of the largest heavy crude oil producing countries in the world. The Caracas is a member of OPEC, participating in production cut pact. Russia and China publicly denounced the sanctions. This move will relieve over supply worries partially despite of peak U.S oil production at 11.9Mbpd.
Turning to weekly data, API reportedly showed a rise in U.S crude supplies by 2.1Mb gasoline stockpiles climbed by 2.2Mb while distillate inventories are edged up by 211Kb. EIA report will be out on Wednesday. The consensus is on Building crude and gasoline stocks which may spur some volatility, Otherwise there is no change in fundamentals of the oil markets. Asian markets are trading in green today. Good day.
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