US Oil Prices Crosses $70 Amid Iran, Venezuela Crisis

US Oil Prices Crosses $70 Amid Iran, Venezuela Crisis

An increase of 1% observed in the market price of crude oil and the rates have reached their highest mark. These prices are highest since the latter part of 2014 and have gone up due to an aggravating economic situation in the Latin American country Venezuela and a pending decision from the end of US regarding the imposition of controls on Iran.

The Brent crude oil future value was trading at $75.57 for a barrel, which was higher than last closing value by 0.9% or 70 cents. During the session, the futures touched the mark of $75.89 per barrel, which is highest since the month of Nov 2014. WTI Crude future value increased to $70.42 a barrel, which is higher by 1% or 70 cents and crossed the mark set in Nov 2014 of $70 a barrel. New records were made on Monday in the values of open interest and volumes for Shanghai crude, which broke the previous record of $71.32 by reaching a level of $72.54 per barrel.

The increasing economic turmoil in Venezuela, which is one of the important exporters of oil, will further bring down the output and export of oil, as notified by analysts. The investment director of Rivkin Securities—an Australian firm, Shannon Rivkin, has stated that the upsurge in the prices of crude oil can be attributed to the increasing issues regarding the economic downfall of the country of Venezuela and the possibility of new restraints against Iran by the government of US.

It is notable that the production of oil by Venezuela has come down to 50% of their production around the year 2000 and is now at 1.5 million barrels per day. The reason for this is that the government of Venezuela has been completely unsuccessful in sustaining the petroleum sector by providing investment.

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