New York, Jan 12 (EFE).- The price of Texas intermediate oil (WTI) rose 0.6% this Monday, to $59.5 per barrel, while the market has its sights set on the protests in Iran and the situation in Venezuela and how both factors could impact the supply of crude oil.
WTI futures contracts for delivery in February added 0.38 dollars compared to the previous close, after increasing 3.1% last week.
US President Donald Trump said this Sunday that Iran’s leaders “called him” yesterday and “want to negotiate” after threatening possible military action in retaliation for violence in the massive protests taking place in the country.
According to The Wall Street Journal, Trump will meet with his cabinet tomorrow for his first formal discussion on possible actions against Iran, including cyberattacks, sanctions and bombings.
On the other hand, operators are paying attention to the situation in Venezuela after Trump met last Friday with directors of oil companies such as Chevron, Exxon, Shell or the Spanish Repsol to discuss the reconstruction of the oil industry in the Caribbean country.
Trump promised incentives and compensation to oil companies that invest in Venezuela with the goal of revitalizing the sector in 18 months, but the industry still hesitates due to the “poor clarity” of support, political uncertainty and the deterioration of Venezuelan infrastructure, according to experts.
In addition, the market is paying attention to the conflict between Russia and Ukraine, after it was learned that an oil tanker bound for Russia suffered a drone attack in the Black Sea last week, raising fears of possible interruptions in the supply of Russian crude oil.
On the economic front, traders expect further interest rate cuts from the US Federal Reserve (Fed) at its meeting this month, as lower rates may boost oil demand.
