The Intermediate Reference Index (WTI) of the West Texas Intermediate is trading around 72.44 practically unchanged on Tuesday.
Crude oil found an intraday floor at 72.24 in the US session and extended the upward trend to prices not seen since November 2014. The market is now in consolidation mode in the region of 72.40.
The prices of black gold are backed by imminent sanctions against Iran by the US, which can lead to shrinkage of the supply of up to 500,000 barrels per day according to analysts. On the other hand, Venezuela is in the midst of a deep crisis and its oil production plummeted to a minimum of 70 years. In addition, the current president, Nicolas Maduro, was re-elected for another six-year term on Sunday and the United States imposed new sanctions against Venezuela on Monday.
Amrita. Sen, Head of Oil Analysis in Energy Aspects
"The United States imposed more sanctions overnight, not necessarily directly on oil, but once again, it paralyzed its industry more and more. No leader company wants to operate there because they do not have personnel, equipment ... it's a disaster "
It has been reported that the new sanctions against Caracas were aimed at preventing Maduro from selling the public debt for his own personal benefit.
PDVSA (Petróleos de Venezuela, S.A., the Venezuelan State Company of Petroleum and Natural Gas)
It has lost control of its refining and storage assets in the Caribbean at the hands of Conoco Phillips, a US exploration and production company.
The API data and the EIA Numbers influence
API data may trigger some short-term movements in crude, but it is unlikely to be a major driver of the market. The data are the forerunners of the most popular EIA numbers on Wednesday.
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