US Crude Oil Price Benefiting From Venezuela Crisis, Stockpiles Data
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US crude oil price, news and analysis:
- The US crude oil price has been rising since late December and could advance further as Washington imposes sanctions on Venezuela’s state oil company.
- News of a smaller than expected build in US crude stockpiles is also potentially positive for the price.
US crude oil price may extend its gains
The price of US crude oil has been rising since hitting a low of $42.63/barrel on December 26 last year and could well extend its gains.
Helping prices higher this week have been the US administration’s decision to impose sanctions against Venezuela’s state-owned oil company PDVSA that could stem the flow of oil from the country that is in political turmoil and currently has two presidents.
In addition, the American Petroleum Institute has reported a crude oil inventory build of 2.098 million barrels in the week ending January 25, compared to analysts’ expectations of a much larger increase in crude oil stockpiles of 7.97 million barrels.
US Crude Oil Price Chart, Daily Timeframe (October 2, 2018 – January 31, 2019)
Chart by IG (You can click on it for a larger image)
These figures were backed by official numbers from the US Energy Information Administration showing a rise in inventories of just 919,000 barrels over the same period, well below the 3.15 million increase predicted.
That could lead to a climb back to the $55/barrel level touched briefly Wednesday and potentially much higher as the upward trend continues.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.