Brent hits $63 as U.S halts Venezuela oil supply to Cuba

Agency Report

Brent crossed $63 per barrel on Monday after the United States said Cuba will stop receiving crude oil from Venezuela and uncertainties over the Federal Reserve policy outlook.

U.S. President Donald Trump on Sunday said no more Venezuelan oil or money will go to Cuba and suggested the Communist-run island should strike a deal with Washington.
But Cuban leader, Diaz-Canel said his counyry is a free, independent, and sovereign nation. “No one dictates what we do,” he added.

Venezuela is Cuba’s biggest oil supplier, but no cargoes have departed from Venezuelan ports to the Caribbean country since the capture of Venezuelan President Nicolas Maduro by U.S. forces in early January amid a strict U.S. oil blockade on the OPEC country, shipping data shows.

Brent crude traded at $63.15 per barrel, up 0.6 per cent from last Friday’s close of $62.74. US benchmark West Texas Intermediate (WTI) was at $59.04 per barrel, up around 0.7 per cent compared with $58.61 last week.

Prices opened higher over the expectations of Fed interest rate cuts, which weakened the dollar, lending support to commodity prices, while comments by Fed Chair Jerome Powell added to market uncertainty.

The US actions involving Venezuela and Cuba also lifted oil prices by heightening perceptions of risk to global oil supply.

Markets remain focused on developments in Venezuela after a US military operation on January 3 resulted in the capture of Venezuelan leader Nicolas Maduro. The operation has raised concerns over potential disruptions to oil production and exports from the South American country.