Global Oil Market - Aug 6 "The tightening continues"

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U.S. President Donald Trump signed an executive order late Monday to declare a total economic embargo against Venezuela, freezing all of the government’s assets and prohibiting transactions with the country, unless specifically exempted.

Trump wrote to Congress that the decision is designed to put further strain on Venezuela “in light of the continued usurpation of power by the illegitimate Nicolás Maduro regime”.

The U.S. announced in January its recognition of Juan Guaidó, head of Venezuela’s national assembly, as the country’s legitimate leader. Although over 50 countries worldwide followed suit, major players such as Russia and China still back Maduro.

International sanctions have increased the strain on Venezuela whose economic crisis has seen the country’s oil production last year nearly cut in half.

Also adding to short-term bullish prospects, markets expect weekly crude stockpiles in the U.S. to fall for an eighth straight week.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30 GMT). Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock draw of around 3.3 million barrels.

Elsewhere Tuesday, Gulf Intelligence’s latest monthly survey showed two-third of respondents expect the extension of the "OPEC+" deal on output restraint to push Brent crude prices to $70 a barrel, other things being equal.