2018.06.0601:53:00UTC+00Oil Prices Climb amid Venezuela Export Worries

Global oil prices advanced during Asian trade after Venezuela increased their prospect of holding off some crude exports, according to people privy to the matter, but gains were limited by reports that the U.S. government had asked Saudi Arabia and other OPEC producers to boost output.

Declining supply from Venezuela had powered a rally in global oil price Brent to almost $80 per barrel. State company PDVSA is considering a force majeure on some exports, according to some people privy to the matter cited by Reuters, amid plunging production from its oil fields and tanker bottlenecks at ports.

Brent crude advanced 27 cents to $75.65 per barrel after falling to its lowest level since May 8. U.S. WTI crude futures traded up 29 cents at $65.81 per barrel, after hitting an almost two-month low on Tuesday.

The Organization of Petroleum Exporting Countries and Russia will convene on June 22-23 to decide how much production they will increase as global inventories have tightened while Venezuela's production has fallen more than projected. U.S. sanctions on Iran also poses a risk to oil exports from the OPEC producer.

According to sources, the U.S. government has been considering the decision by putting in unofficial requests to Saudi Arabia and other OPEC producers to boost output.