Image credit: Global Risk Management

---

Geopolitics trumps bearish EIA stats. Brent trading at 74.42 (+0.42) during Asian trade. The US EIA released its oil inventory statistics during US trade yesterday. According to the figures, crude oil stocks built last week. The market fell about 0.50/bbl at the onset of the numbers.

During his visit to Washington, French President Emmanuel Macron, challenged Trump on his policies. One of which was the upcoming decision on the 6+1 nuclear deal with Iran. The US has until May 12 to decide on whether or not to restore US sanctions.

In Venezuela, two Chevron executives have been imprisoned over a contract dispute with PDVSA. They face charges of treason. Many majors and service companies have already written off their assets in the country. Some examples are ENI, Total, Schlumberger and Halliburton. Venezuela holds the largest proven oil reserves in the world but with their actions, they are driving away foreign investors and FDI which is key to oil production. The production level has been falling for some time now and many doubt that this situation will ever improve. Production used to stand at 4m bpd but has since fallen to 1.5m bpd.