Tuesday , March 9 2021

Oil prices rise as a result of US sanctions against Venezuela

Oil prices rose sharply this Tuesday, one day after US sanctions against the Venezuelan oil company PDVSA.

The Brent barrel from the North Sea for delivery in March ended at $ 61.32 at the Intercontinental Exchange (ICE) in London, $ 1.39 more than at Monday's close.

In the New York Mercantile Exchange (Nymex), the "light sweet crude" (WTI) barrel for the same delivery rose to $ 1.32 to reach $ 53.31 at the close.

Washington announced Monday measures against PDVSA, accused of being a "vehicle of corruption."

According to the US Treasury, these sanctions – which prohibit oil from trading with US entities and freezing their foreign assets – have the objective of "avoiding" deflected it from more resources "by Maduro.

"American buyers of Venezuelan crude oil will have to pay through a third party," said Olivier Jakob, a Petromatrix analyst, who added that this will lead to "stopping the flow of crude oil to the United States".

Venezuelan oil, very heavy, is used in refineries in the southern United States, where they mix it with lighter crude oil.

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