Oil edges higher as Venezuela election stokes supply worries

Oil futures rose Monday on fears the U.S. could impose new sanctions on Venezuela, after weekend elections in the country that were viewed as illegitimate by the opposition and foreign governments.

West Texas Intermediate crude for June delivery
CLM8, +0.48%
on the New York Mercantile Exchange rose 18 cents, or 0.3%, to $71.46 a barrel. Brent crude
LCON8, -0.01%
the global benchmark, was unchanged at $78.51 a barrel.

The U.S. has already imposed sanctions on individuals in Venezuela, but sanctions on the oil industry could be the final nail in the coffin for the staggering oil industry, said Robert Yawger, director of futures at Mizuho, in a Monday note.

Venezuela President Nicol谩s Maduro, who has seen the countrys economy collapse, won a second six-year term Sunday in an election boycotted by the opposition and condemned as a sham by the U.S. and other countries.

The U.S. has stopped short of a ban on oil imports from Venezuela on fears of worsening the countrys broad economic crisis.

Yawger said oil futures may need Venezuela headlines to push crude after WTI stalled above $72 a barrel and Brent above $80 last week.

Sanctions on Venezuela exports would heighten concerns about global supply stoked by the Trump administrations decision to pull out of the Iran nuclear deal and move to reimpose sanctions on Tehran.

Check out: Iran vows to stand by nuclear deal if EU helps it offset U.S. sanctions

In other energy trade, June gasoline futures
RBM8, +0.00%
were little changed at $2.2327 a gallon, while June heating oil
HOM8, -0.29%
fell 0.2% to $2.2617 a gallon. June natural gas futures
NGM18, -0.14%
shed 0.9% to $2.822 per million British thermal units.

Related Topics Futures Commodities Markets Commodity Futures Trading Commission Oil

Quote References CLM8 +0.34 +0.48% LCON8 -0.01 -0.01% RBM8 +0.00 +0.00% HOM8 -0.01 -0.29%

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