Oil prices on Tuesday picked up from the late-Monday recovery seen after the U.S. Treasury unveiled sanctions on Venezuela’s state-owned oil firm, Petróleos de Venezuela SA.
Prices had settled at a two-week low during Monday’s regular session, logging their deepest drop of the year so far, before the after-hours reversal.
The U.S. Treasury sanctioned Venezuela’s oil firm, which is also known as PdVSA, raising the risk of disruptions to oil supply from the South American nation, home to the world’s largest oil reserves.
Analysts are still assessing what this could mean to the global market.
For now, West Texas Intermediate crude for March delivery was up 44 cents, or 0.8%, at $52.42 a barrel. The contract had shaved 3.2%, to settle at $51.99 on the New York Mercantile Exchange Monday. March Brent crude was up 56 cents, or 0.9%, at $60.49 a barrel. It fell 2.8% to $59.93 Monday on ICE Futures Europe.
Source : Market Watch