Brent crude futures have risen to $64 a barrel as OPEC-led supply cuts and sanctions from the US against the country’s petroleum industry offset forecasts of weaker demand and an economic slowdown. The sanctions came into force on Monday and ban US companies from exporting goods or services to the country’s state-run oil company, Petroleum of Venezuela (PDVSA). Spot gold also fell slightly by 0.5 percent to $1,310.76 per ounce – its lowest level in nearly a week.
This had surged to $1,326.30 on Thursday – its highest level since April 26, 2018.
On Monday, ten European countries joined the US in recognising opposition leader Juan Guaido as Venezuela’s interim President, heightening a global showdown over Nicolas Maduro’s socialist rule.
The coordinated move from Britain, France, Spain, Germany, Portugal, Sweden, Denmark, Austria, the Czech Republic and the Netherlands came after the expiry of an eight-day ultimatum for Mr Maduro to call a new election.
He has been accused of running the oil-rich country of 30 million people like a dictatorship and destroying the economy, but has continued to defy them.
Last month, Mr Guaido declared himself temporary leader in a move that has split opinion across the world and brought rioting Venezuelans onto the streets.
US President Donald Trump immediately recognised him as leader but European Union countries have not been so quick to follow suit.
Mr Maduro replaced former President Hugo Chavez in 2013 following his death but he has seen Venezuela’s economy collapse along with the exodus of three million of the country’s people.
He has accused the US of waging an “economic war” on Venezuela and harbouring coup pretentious in order to gain control over its highly-valued oil.
The embattled President has told his US counterpart to stop his “dirty” imperialist conspiracy to overthrow him. Maduro also rejected European calls for fresh elections.
Speaking to Spanish journalist Jordi Evole, he raged: “Stop, stop, Trump! Hold it right there!
“You are making mistakes that will leave your hands covered in blood and you will leave the presidency stained with blood.
“I refuse to call for elections now – there will be elections in 2024. We don’t care what Europe says.”
He added: “You can’t base international politics on ultimatums. That’s the stuff of the empire, of colonial times.”
Venezuela’s oil reserves are the largest in the world but production has plunged under Mr Maduro’s rule.
According to OPEC figures, Venezuela had oil reserves of 302.8 billion barrels at the end of 2017, accounting for a quarter (24.9 percent) among the 14 OPEC nations.