Oil Prices Surge Over Venezuela Oil Crisis

Investing.com – Oil prices rose on Thursday, amid concern of output decline from Venezuela.

increased 1.41% to $65.64 a barrel as of 10:18 AM ET (14:18 GMT). Meanwhile futures, the benchmark for oil prices outside the U.S., surged 1.46% to $76.45.

Venezuela is nearly a month behind on delivering crude to customers, . The country is in the midst of an economic crisis and faces threats of U.S. sanctions.

Meanwhile the Organization of the Petroleum Exporting Countrie and Russia, which Venezuela is part of, is considering raising its supply output.

Reuters reported May 25 that the group was considering raising supply by one million barrels per day as early as June, as the organization faces losses from Venezuela and Iran.

The organization is set to meet in Vienna on June 22. OPEC has been cutting crude output by 1.8 million barrels per day (bpd) to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018.

Prices were held back slightly by concern that the U.S. is increasing production. U.S. oil inventories rose by 2.1 million barrels in the week to June 1 to 436.5 million barrels, the Energy Information Administration said. Analysts had forecast a decline of 2.0 million barrels.

Domestic oil production – driven by shale extraction – hit a record of 10.8 million barrels per day (bpd), according to the ‘s weekly report. Only Russia currently produces more, at around 11 million bpd.

In other energy trading, increased 0.49% at $2.0892 a gallon, while rose 1.35% to $2.1555 a gallon. was up 2.14% to $2.958 per million British thermal units.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.