Oil price soars in the Gulf of Mexico due to crisis in Venezuela

After Guaidó was sworn in as president of Venezuela, oil prices in the Gulf of Mexico reached their highest price in five years.

Oil price soars in the Gulf of Mexico due to crisis in Venezuela
Oil price soars in the Gulf of Mexico due to crisis in Venezuela

After the oath that Juan Guaidó made as "president in charge" of Venezuela to overthrow Nicolás Maduro and end what they call the "usurpation" of power, both Venezuelans and the international community are divided between the support and rejection of the former head of the Parliament. And apparently, the crisis in the South American country has also reached international markets, specifically, and altered the price of oil in the Gulf of Mexico.

The price of barrels of oil in that specific area is relevant because they are the ones that most closely resemble the characteristics and prices of Venezuelan crude oil. Oil costs in the Gulf of Mexico are measured with the Mars Blend premium, which reached its highest price in the last five years against the West Texas Intermediate; 68 dollars per barrel.

Why did the price increase so much?

According to Bloomberg, the chances of Venezuela reducing its oil production due to the political, economic and social crisis in which it is located have led, to a greater extent, this price increase. However, the rest of the reference oils, however, have not undergone variations, at least so far.

"A resulting reduction in oil exports from the Latin American country, if any, would be a difficulty for the oil market, because supplies of the type of barrels that the country extracts have already been restricted in recent months," reveals Bloomberg.