& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News





Oil prices finish higher Tuesday in wake of U.S. sanctions on Venezuela‘s PDVSA

By Myra P. Saefong / MarketWatch

Petroleumworld 01 29 2019

Oil prices finished higher on Tuesday, getting a boost in the wake of the U.S. Treasury's decision to impose sanctions on Venezuela's state-owned oil firm, Petróleos de Venezuela SA.

Prices had settled at a two-week low during Monday's regular session, logging their deepest drop of the year so far, before the after-hours reversal.

The U.S. Treasury sanctioned Venezuela's oil firm , raising the risk of disruptions to oil supply from the South American nation, home to the world's largest oil reserves. Venezuela's oil firm is also known as PdVSA,

West Texas Intermediate crude for March delivery US:CLG9 added $1.32, or 2.5%, to settle at $53.31 a barrel. The contract had shaved 3.2%, to finish at $51.99 on the New York Mercantile Exchange Monday. March Brent crude LCOH9, +2.14%  rose $1.39, or 2.3%, to $61.32 a barrel. It fell 2.8% to $59.93 Monday on ICE Futures Europe.

Prices recouped much of the losses from the prior session, when both benchmark contracts ended Monday at their lowest since Jan. 14, according to FactSet data.

Analysts are still assessing the potential global-market impact of the U.S. actions toward Venezuela.

“The sanctions will deal a meaningful blow to the Maduro administration's cash flow, but the effects won't be as harsh as the United States expects,” said Rystad Energy analyst Paola Rodriguez-Masiu.

“Administration officials reportedly said the sanctions would result in more than $11 billion in export losses for Venezuela over the next year, but I believe this figure will be substantially lower,” said Rodriguez-Masiu, a native Venezuelan who coordinates Rystad Energy's global refinery and infrastructure data. “The oil that Venezuela currently exports to the U.S. will be diverted to other countries and sold at lower prices. For countries like China and India, yesterday's news was akin to Black Monday. They will be able to pick up these oil volumes at great discounts.”

Read: Here's what Venezuela turmoil means for oil prices

Self-proclaimed “interim president” Juan Guaido is the biggest challenge to strongman Nicolás Maduro's government in years. Guaido has urged the country's powerful military forces to defect, promising amnesty.

Meanwhile, trade tensions between the U.S. and China continue to hang over energy trading, raising expectations for a slowdown in energy demand. China triggered the legal process for the World Trade Organization to hear its challenge to U.S. tariffs imposed on $234 billion of goods, according to a report from Reuters this week . Trade negotiations between senior officials from the two nations resume this week in Washington.

In other related news, Saudi Arabia plans to pump about 10.1 million barrels of oil a day in February— well below the country's voluntary limit of 10.33 million barrels a day, Saudi energy minister Khalid al-Falih said in an interview with Bloomberg Television .

Over in the U.S., a weekly report from the EIA due Wednesday is expected to show a rise of 3.1 million barrels in crude stockpiles, on average, according to a survey of analysts conducted by S&P Global Platts. The survey also showed expectations for a rise of 2.8 million barrels in gasoline supplies, but distillates were expected to fall by 2 million barrels.

On Nymex Tuesday, February gasoline RBG9, +0.05%  added 1.3% to $1.351 a gallon and February heating oil HOG9, -0.09%  rose 3.3% to $1.898 a gallon.

February natural gas NGG19, +0.82%  gave up earlier losses to gain 1.3% to $2.95 per million British thermal units on its expiration day. The contract tumbled 8.4% Monday to $2.911 per million British thermal units—the lowest since September, but ended last week about 8.7% lower. It's been subject to volatile swings, amid extreme weather conditions. March natural gas NGH19, +0.14% which is now front-month contract, added 1% to $2.903.

About 250 million people — or 77% of the continental U.S. population — will face temperatures below freezing this week. Of those, 90 million will endure temperatures below zero and a staggering 25 million Americans could see temperatures fall to 20 degrees below, according to meteorologist Ryan Maue of weathermodels.com.Temperatures will plunge to 20-40 degrees below zero between Tuesday and Thursday in the Upper Midwest and Great Lakes.

Read: Here's how investors can take advantage of ‘opportunity' in natural gas

“Although the West and Midwest regions are predicted to experience colder temperatures, the market is likely giving heavier weight to the Eastern forecast, as the Northeast is a main heating demand center,” said Christin Redmond, global commodity analyst at Schneider Electric. The Eastern U.S. will see above average temperatures over the coming week.”



We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

Hit your target - Advertise with us

PW 300.000 plus request per week

Story by Myra P. Saefong from MarketWatch.
01 29 2019 20:34 GMT

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.