WTI Crude oil futures edged up impressively last week. Oil market was concerned about the supply side developments The US Treasury announced that it was imposing sanctions on the Venezuelan state-owned oil company, PDVSA, effectively bringing US purchases of Venezuelan oil to an abrupt end. EIA data shows that the US imported on average 514Mbbls/d of Venezuelan crude oil over 2018. This is bound to trim the overall product supplies in global markets at least in the near term.
Meanwhile, the Saudi Energy Minister noted in an update that the Kingdom is likely to cut its crude oil output to 10.1MM b/d over February, and that output will remain well below the agreed cap for the six month period. WTI Crude oil futures closed with a spike of 3% in a single session to end at $ 55.30 per barrel – its highest level in two and half months. MCX Crude oil futures also approached near Rs 4000 per barrel mark following firm global cues.