Saturday, February 24, 2018

Barron's: Venezuelan Free Fall Would Give Oil a Pop

By SIMON CONSTABLE

Investors in the oil market should keep a keen eye on Venezuela. an upcoming election and the prospect of U.S. sanctions will likely send the country’s wounded energy sector into a tailspin, at least temporarily. It could happen before the summer. And when it does, expect oil prices to jump by up to $10 a barrel.

“Venezuela is headed down, falling off a cliff,” says Victor Sperandeo, chief executive and general partner EAM Partners, a commodity trading advisory firm. “The place will go into chaos and won’t be able to pump oil.”

Such a move could push prices for Brent crude to as much as $75 a barrel from roughly $65 a barrel. Read more here.

Photo by David Thielen on Unsplash

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