London.- Brent crude oil for delivery in March fell 1.22% this Wednesday, below $60 – specifically at 59.96 – at the close of the session on the London Futures Market, while the market digests the US plans in Venezuela.
North Sea crude, the benchmark in Europe, fell 0.74 dollars on the Intercontinental Exchange (ICE) compared to the close of the previous day, when it ended at 60.70 dollars.
Brent fell again this Wednesday, amid investor fears that the United States’ plans to import “between 30 and 50 million” barrels of Venezuelan crude oil could exacerbate an already anticipated scenario of oversupply worldwide.
StoneX market analyst Fawad Razaqzada pointed out this Wednesday that, although the impact of these actions may occur in the long term, the conclusion is that, sooner or later, more oil will be extracted.
«Venezuela will take a considerable time to recover production»
“Venezuela will take a considerable time to recover production to previous levels. If we observe a smoother recovery of Venezuelan oil production venezolana, this would be slightly bearish for oil prices, amid concerns about an oversupply,” said the analyst.
Several sessions in the red
Except for a brief rebound at the beginning of the week, Brent has accumulated several sessions in the red following the overthrow and subsequent capture of the now-former Venezuelan president Nicolás Maduro in a military intervention by the U.S. last Saturday.
In the making, on the bullish side, the market is awaiting more interceptions of oil tankers in relation to Venezuela, after the United States captured two ships in the Atlantic and the Caribbean this Wednesday; as well as the growing tensions due to Washington’s threats about a hypothetical “acquisition” of Greenland.
