Oil prices continue to fall: key factors
7 January 15:18
World oil prices continued to fall after the US began to tighten control over Venezuela’s oil industry.
This is reported by "Komersant Ukrainian" with reference to Bloomberg.
Thus, the price of Brent crude oil fell to $60 per barrel, or 1.7% lower, while West Texas Intermediate crude oil was trading at $56.
According to the agency, oil prices have declined since the beginning of the year after the worst annual decline since 2020. In addition to deep fears of a global glut after supply growth, the market continues to assess the consequences of the kidnapping of Venezuelan leader Nicolas Maduro.
“Overall, the fundamental outlook remains bearish, pointing to further declines,” said Warren Patterson, head of commodities strategy at ING Groep NV.
Venezuela was once an oil-producing giant, but production has declined sharply over the past two decades and now accounts for 1% of global supply.
Today, Chevron is the only American oil giant operating in Venezuela under a special US permit, and the company continues to load crude oil. All oil is delivered to refineries in the United States.
Trafigura Group and other traders will hold talks with the US on how they can return to buying Venezuelan oil.
In addition, according to analysts, a peace agreement between Ukraine and Russia could put an end to a number of restrictions on Russian crude oil exports, which would increase supply pressure on an already oversupplied market.
Yesterday, January 6, global oil prices declined amid expectations of lower demand and market concerns about the prospects for growth in Venezuelan crude oil production.
