Venezuelan sanctions push oil higher as the US looks to unseat president

“Persons operating in the oil sector of the Venezuelan economy may be subject to sanctions,” it said.

Venezuela has the world’s biggest proven oil reserves and is a member of Opec.

Despite its huge reserves, Venezuela’s exports declined to little more than 1-million barrels a day in 2018 from 1.6-million in 2017, according to Refinitiv ship tracking data and trade sources.

The decline comes amid an economic crisis which has seen investment plummet, power and key equipment supplies disrupted, and salaries left unpaid.

While news of the sanctions against Venezuela grabbed headlines, analysts said the fundamental issue for global oil trade remained plentiful.

“The more significant issue is [global] supply, and despite Opec’s best efforts [to reduce output] there seems to be plenty of it,” said Jeffrey Halley of futures brokerage Oanda in Singapore.

Global oil supply remains high largely due to a more than 2-million barrels a day increase in US crude oil production last year, to a record 11.9-million barrels a day increase.

There are also concerns in the oil industry that crude demand could stutter amid an economic slowdown.

Chinese economy 

Of China’s 31 provinces, regions and municipalities, at least 23 have cut their economic growth targets for 2019, according to provincial announcements this month, in a sign that industry and manufacturing in the world’s number two economy is slowing.

To stem the slowdown, China’s National Development and Reform Commission on Tuesday unveiled a flurry of measures aimed at spurring sales of items ranging from cars and appliances to information services.

Reuters