Oil Prices Gain Slightly After US Sanctions Venezuela

• Oil Prices Gain Slightly After US Sanctions Venezuela

Oil prices pared losses on Tuesday after Washington imposed sanctions on Venezuelan State-owned oil company, PDVSA.

Brent crude, against which Nigerian crude is measured, rose 0.2 percent to $60.22 per barrel during Asia trading session.

U.S. West Texas Intermediate (WTI) gained 0.3 percent from Monday low to $52.12 per barrel.

Despite the move to pressure President Nicolas Maduro to step down and aid opposition leader Juan Guaido, who has already declared himself as the interim president last week, the oil prices merely ticked up a bit. Indicating global slowdown and rising crude supply are still weighing on oil prices.

“The more significant issue is (global) supply, and despite OPEC’s best efforts (to reduce output) there seems to be plenty of it,” said Jeffrey Halley of futures brokerage OANDA in Singapore.

Global oil supply remains high due to the surge in U.S. production, oil production in the U.S rose to over 2 million barrels per day.

Traders are also wary that demand could slow amid slowing global economy, especially in China.

There are also concerns in the oil industry that crude demand could stutter amid an economic slowdown.