Possible sanctions against Venezuela encourage oil prices to grow

Baku. 25 July. REPORT.AZ/ The price of "Brent" oil brand has soared approximately by 2 % due to the strengthening of the possibility of the U.S. imposing sanctions on Venezuela.

Report informs citing Investing.ru, banning the oil import is also one of the sanctions that may be imposed by the U.S. President's Administration against Venezuela.

One of the reasons of the sanctions is the presence of political pressure in this country. Another main reason of the sanctions is that President of the country Nicolas Maduro has extended his powers by making changes to the Constitution.

Notably, Venezuela is a member of OPEC. The country was about to go bankrupt after the oil prices sharply decreased in 2014. Analysts say that the U.S. imported some 673, 000 barrels of oil per day from Venezuela in June, and that the sanctions would stimulate Canadian producers. Analyst of the "GMP First Energy" investment services company Martin King considers that to meet its petroleum needs, the United States should find another country instead of Venezuela. "If the sanctions are imposed, it would be a stimulus for Canadian producers." 

Report informs that at present, "Brent" oil brand is sold at 49,5 USD per barrel. The weekly report of the Energy Information Agency of the U.S. Department of Energy is expected to be released on July 26. In case the declining of the oil reserves is registered in the report, the prices are expected to temporarily exceed 50 USD per barrel.