Oil prices steady post biggest gain in a week, focus remains on Venezuela

Oil prices steadied post the biggest gain in a week as traders gauged the outlook for Venezuela, while concerns regarding a global glut remained.

The West Texas Intermediate was close to $58 a barrel, after ending 1.7% up in the previous session, post US forces capturing Venezuela's president over the weekend, injecting some geopolitical risk into prices. Shares in oil firms surged on the prospect for a revival of the country's energy sector.

However, the broader market is grappling with a swelling surplus and Venezuela only accounts for a small fraction of global output, meaning any disruption to the country’s exports is unlikely to have a sustained

price impact. The glut has prompted Saudi Arabia to trim crude prices to Asia for a third month.

Hedge funds boosted bullish crude bets to the most since November in the week before the ouster of Venezuelan President Nicolás Maduro. US Energy Secretary Chris Wright plans to talk this week with oil-industry executives about reviving Venezuela’s energy sector, according to people familiar with the matter.

With inputs from Bloomberg

Also Read: Asian equities gain to extend record global rally