Jakarta, hitclubapk3 Indonesia
—
Price
crude oil
world rose slightly in trading Friday (5/12), supported by expectations of cuts
interest rate
by the central bank of the United States (US) Federal Reserve (
The Fed
).
The price increase was also triggered by increasing tensions between the US and Venezuela, as well as stalled peace talks related to the Russia-Ukraine war.
Quote
Reuters
, the price of Brent oil edged up 6 cents or 0.09 percent to US$63.32 per barrel.Meanwhile, US West Texas Intermediate (WTI) crude oil rose 4 cents or 0.07 percent to US$59.71 per barrel.Both previously strengthened by around 1 percent in the trading session on Thursday (4/12).
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The biggest push this week came from hopes that the Fed would lower its benchmark interest rate.Interest rate cuts generally encourage economic growth and increase energy demand.
Meanwhile, the market is also wary of the potential for US military operations in Venezuela.US President Donald Trump last week said Washington would take immediate action to stop Venezuela’s narcotics network in the near future.
Rystad Energy warned the move could potentially disrupt about 1.1 million barrels per day of Venezuelan oil production, most of which is exported to China.
On the other geopolitical front, talks between the US and Russia in Moscow this week failed to produce a breakthrough regarding the Ukraine war.This diplomatic failure foreclosed the possibility of a deal that could reopen Russian oil access to global markets.
Although a number of factors support prices, the market remains overshadowed by concerns about a global supply surplus.Saudi Arabia reportedly cut the official selling price (OSP) of Arab Light oil for January delivery to Asia to the lowest level in five years.
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