Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country’s crude exports, ONA reports quoting Reuters.
Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 percent, higher at $72.80. Last week, Brent hit a six-month high above $75.
U.S. crude futures closed at $63.91, up 41 cents, or 0.7 percent, on the day, after hitting a session high at $64.75.
Prices rose after Venezuelan opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains after the government said state-run oil company PDVSA’s operations were not disrupted and top military leaders remained loyal.
“The possibility that Guaido will take control of the situation isn’t as strong as perceived this morning,” said Bob Yawger, director of energy futures at Mizuho in New York. “If Maduro hangs on, you’ll see the market stay lower.”
OPEC member Venezuela’s oil exports have already been reduced by U.S. sanctions on PDVSA and an economic crisis, helping to curb the Organization of the Petroleum Exporting Countries’ production to a four-year low, according to a Reuters survey.