Crude oil prices are trading flat at the start of the European session, hovering just below the $70 level. After sharp gains over the past few sessions, the price per barrel has encountered resistance. News of a non-aggression deal covering the Black Sea and energy infrastructure between Russia and Ukraine, coupled with US support for lifting some sanctions on Russian exports, has opened a window of opportunity for Russian crude to re-enter the market. However, the potential increase in supply under this scenario has not led to a significant drop in prices; the US administration’s threat of 25% tariffs on countries purchasing Venezuelan oil has raised concerns about potential disruption to the global oil supply, which is already set to decline by 200,000 barrels per day when Chevron halts operations in the South American country at the end of May.
Ricardo Evangelista – Senior Analyst, ActivTrades
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Source: ActivTrader
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