Oil prices climbed during Friday’s Asian trading as the United States reportedly plans to acquire and sell most of Venezuela’s state-run oil company’s output.
Brent crude prices were up 0.6% to US$62.33 per barrel by 2:30 pm AEDT (3:30 am GMT). West Texas Intermediate increased 0.5% to $58.05.
U.S. President Donald Trump is considering plans to buy and market most of Venezuelan state-run oil company PDVSA’s production, which he believes could lower oil prices to $50 per barrel, the Wall Street Journal reported.
PDVSA has not yet agreed, though it has said it is holding talks with the U.S. about potential oil transactions. The U.S. has reportedly invited executives from commodity traders Vitol and Trafigura to discuss selling Venezuelan oil.
Oil’s “price surge has been primarily due to Trump’s claim to control Venezuela’s oil export, which could see a price increase from previously discounted sales,” according to Moomoo ANZ market strategist Tina Teng.
Trump said earlier this week that Venezuela would send the U.S. 30 to 50 million barrels of sanctioned oil, and has told the New York Times that the U.S. could control Venezuela and its oil revenue for years.
Iraq’s government has approved plans to nationalise the West Qurna 2 oilfield, one of the world’s largest. West Qurna 2 is majority-owned by Russian oil company Lukoil, which has been selling foreign assets amid Western sanctions.
Lukoil declared force majeure at West Qurna 2 in November. Iraq’s state-run Basra Oil Company will operate the oilfield for 12 months, Reuters reported.
OPEC+ member Iran is experiencing a nationwide internet blackout, according to internet monitoring group NetBlocks. Protests over Iran’s faltering economy and severely devalued currency have been ongoing since December, with more than 40 people killed so far.
