Oil prices rose during Thursday’s Asian trading after the United States made it clear it aims to control Venezuela’s oil sales indefinitely.
Brent crude prices were up 0.3% to US$60.15 per barrel by 2:30 pm AEDT (3:30 am GMT). West Texas Intermediate climbed 0.3% to $56.17.
The U.S. is planning to manage the sale of Venezuela’s oil products, according to U.S. Energy Secretary Chris Wright. Venezuela has not yet publicly commented.
“We’re going to market the crude coming out of Venezuela,” said Wright. “First this backed-up store of oil, and then indefinitely going forward we will sell the production that comes out of Venezuela in the marketplace.”
Venezuela’s state-owned oil company PDVSA has said it is progressing talks to sell oil to the U.S., with terms that could be similar to its agreements with foreign-based companies like Chevron.
U.S. President Donald Trump claimed yesterday that the Venezuela would send between 30 and 50 million barrels of oil to the U.S., though Venezuela has not confirmed this. Trump has also been urging oil majors to invest in raising Venezuela’s oil output, but none have publicly agreed to do so.
“Restoring Venezuela’s oil industry would require companies to overcome several hurdles: crude output that trades at a considerable discount to global benchmarks, billions of dollars in capital commitment, and intense competition for capital within global portfolios,” wrote BloombergNEF oil analyst Tai Liu.
The U.S. also seized two sanctioned oil tankers that have been operating in international waters near Venezuela. It had been pursuing the Marinera, a tanker known as the Bella 1 before it re-registered as a Russian vessel, since 20 December.
