US President Donald Trump said Washington may launch a new military intervention if interim Venezuelan President Delcy Rodriguez does not respond to their demands, The Guardian reported on Monday.
Key quotes
All injured service members are doing well after the operation in Venezuela.
Looking to reform Venezuela more than elections right now.
We are dealing with people who have just taken the oath.
We were ready for a second wave, we were all ready to go, but I don’t think we’ll need it.
Elections will be held in due course.
Colombia is ruled by a sick man and he won’t stay that way for long.
The Columbia process sounds good to me.
We have to do something with Mexico, and Mexico has to get its act together.
If they do not behave well, they will launch a second strike on Venezuela.
The United States needs full access to Venezuela’s oil and other resources.
Cuba seems ready to fall.
Market reaction
At the time of writing, West Texas Intermediate (WTI) crude oil was trading 0.56% higher on the day to trade at $57.50.
Frequently asked questions about West Texas Intermediate crude oil
West Texas Intermediate oil is a type of crude oil that is sold in international markets. WTI stands for WTI, and is one of three main types including Brent and Dubai crude. WTI is also referred to as “light” and “sweet” due to its relatively low gravity and sulfur content, respectively. It is considered a high quality oil and easy to refine. It is sourced from the United States and distributed through the Cushing Hub, considered the “pipeline crossroads of the world.” It is a benchmark for the oil market and the price of WTI is frequently quoted in the media.
Like all assets, supply and demand are the main drivers of the price of WTI. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and affect prices. Decisions by OPEC, a group of major oil-producing countries, are another major driver of the price. The value of the US dollar affects the price of WTI, as oil is mostly traded in US dollars, so a weak US dollar can make oil more affordable and vice versa.
Weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI. Changes in inventories reflect fluctuations in supply and demand. If data shows a decline in inventories, this could indicate increased demand, leading to higher oil prices. High inventories can reflect increased supply, causing prices to fall. The API report is published every Tuesday and the EIA report the next day. Their results are usually similar, falling within 1% of each other 75% of the time. EIA data is more reliable, because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that collectively decides production quotas for member countries at meetings held twice a year. Their decisions often affect WTI prices. When OPEC decides to cut its quotas, it can tighten supply, causing oil prices to rise. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten additional non-OPEC members, most notably Russia.
