Market reacts to the capture of Nicolás Maduro and Washington’s signal that it intends to explore Venezuelan oil resources
The prices of fell this Monday(5) after the intervention of already to capture its president, Nicolás Maduro, and Washington’s announcement that it intends to explore the country’s oil resources.
At around 9:05 am GMT (6:05 am in Brasília), the price of a barrel of Brent from the North Sea, for delivery in March, fell 1.12%, to 60.07 dollars (330 reais).
Its American equivalent, a barrel of West Texas Intermediate, for delivery in February, fell 1.22%, to 56.62 dollars (307 reais).
After Maduro’s capture, Venezuela’s interim president, Delcy Rodríguez, said she was ready to work with the Trump administration and defended on Sunday a balanced and respectful relationship with the United States.
“This reduces the risk of a prolonged embargo on Venezuelan oil exports, which will soon be able to circulate freely outside Venezuela,” said Bjarne Schieldrop, an analyst at SEB.
Although Venezuela has the largest proven oil reserves in the world, the country’s production is low, at approximately one million barrels per day.
But, according to Arne Lohmann Rasmussen, analyst at Global Risk Management, to increase production “the investment needs are enormous” and “years” will be needed.
*With AFP
