Oil Extends Gains In Choppy Trade

(RTTNews) - Oil extended gains in choppy trading on Tuesday after settling up $1 a barrel in the previous session on concerns about the possible impact on crude flows from Venezuela, home to the world's largest oil reserves.

Benchmark Brent crude futures were up 0.2 percent at $61.90 a barrel while WTI crude futures edged up by 0.2 percent to $58.42.

Tensions between the United States and Venezuela remain a worry for markets.

Speaking to NBC News, U.S. President Donald Trump insisted the United States is not at war with Venezuela and that the country must first be stabilized before holding new elections.

Trump said the U.S. could help rebuild Venezuela's oil and energy sector and potentially subsidize oil companies involved in restoring infrastructure.

While the immediate damage to global supply chains remains limited, it is feared that oil supplies and economic stability could be affected if the situation worsens.

Current Venezuelan production is around 800,000 to 1.1 million barrels per day, roughly 1 percent of global supply.

Meanwhile, as concerns over excess supply loom, Saudi Arabia has lowered the price of its crude for Asian buyers for the third consecutive month.

State-owned oil giant Saudi Aramco has set the February price for its flagship Arab Light crude to Asian buyers at $0.30 a barrel above the Oman/Dubai average, down from $0.60 in the prior month, reflecting broader concerns about market balance amid changing supply dynamics and production strategies.