Oil prices edged up after sliding in the previous two sessions, with supply worries resurfacing after US President Donald Trump announced a reversal of a license given to US’s leading oil company to operate in Venezuela.
Brent Crude was trading over one percent up at around 73 dollars and 27 cents per barrel. WTI Crude was trading nearly one percent up at around 69 dollars and 30 cents per barrel when reports last came in.
Meanwhile, US commercial crude oil inventories decreased by 2.3 million barrels to 430.2 million barrels in the week ending 21st February, according to data released by the Energy Information Administration.
The contracts had settled in the previous session at their lowest since December 10. “Prices are stabilising this morning around their two-month lows after Trump reversed Chevron’s licence to export Venezuelan oil,” said PVM analyst Tamas Varga.
The Chevron licence news means the company will no longer be able to export Venezuelan crude. And if Venezuelan state oil company PDVSA exports oil previously exported by Chevron, U.S. refineries will be unable to buy it because of U.S. sanctions.