The crude oil market was up by about a Dollar per barrel on Monday as traders assessed the possible impact on crude flows from Venezuela, home to the world’s largest oil reserves, following the capture of President Nicolas Maduro by the United States.
Brent crude gained $1.01 or 1.66 per cent to sell at $61.76 a barrel and the US West Texas Intermediate (WTI) crude appreciated by $1 or 1.74 per cent to $58.32 per barrel.
Investors digested news of President Maduro’s capture and that the US would take control of Venezuela, which is a founding member of the Organisation of the Petroleum Exporting Countries (OPEC), whose crude exports had been under a US embargo.
Venezuelan oil output has plummeted in recent decades, curbed by mismanagement and a lack of foreign investment after the nationalisation of oil operations in the 2000s. Output averaged about 1 million barrels per day last year, equating to about 1 per cent of global production.
It was reported that the US government would meet with oil companies, Exxon Mobil, ConocoPhillips, or Chevron Corp, to discuss Venezuelan oil production future.