The crude oil prices rose to a two-month high on Monday, supported by the tightening US market conditions and the threat of sanctions against Venezuela. The US light WTI crude rose by 0.52% to 49.97 USD per barrel, while the European benchmark Brent oil adds 0.54% to its price to 52.50 USD per barrel. The prices of both varieties are about to record sixth consecutive session growths.
Last week, oil recorded its biggest weekly price growth this year – WTI rose by 3.94 USD (+8.5%) and Brent increased by 4.46 USD (+9.3%).
Since the last meeting of leading oil producers in St Petersburg, oil has risen by about 10%. Then, at the beginning of last week, any further measures to stimulate the oil market balance were discussed. In addition, Nigeria has promised to limit exports, while Saudi Arabia has reduced production.
The US is considering imposing sanctions on Venezuela’s key oil sector in response to Sunday’s so-called “Constitutional assembly”. According to Washington, the vote is not legitimate.
According to traders, however, the strongest price support is the tightening US market. In July, oil platforms grew by only 10, the smallest figure since May 2016.
There were other data showing a fourth consecutive week drop in US reserves, which could be seen as a possible delay in shale yield.