Oil rises 2 percent as tightening supplies take focus | Reuters

Oil rises 2 percent as tightening supplies take focus | Reuters:

Oil rose nearly 2 percent on Tuesday as attention centered on geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories.

Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.

Venezuela’s main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities.

Brent settled up 76 cents at $67.97 a barrel, not far below its year-to-date high of $68.69, reached on March 21.

U.S. crude futures’ gains were sharper, rising $1.12, or 1.9 percent, to $59.94 a barrel, ahead of government inventory data.