Opec tightens its taps as global oil demand stalls

Venezuela's President Nicolas Maduro attends a military exercise in Charallave

OPEC countries demonstrated an unequal level of oil production cuts as of the end of January and reduction rates need to be expedited, OPEC Secretary General Mohammad Barkindo said on Tuesday in a statement released by the Secretariat's press service.

A boy walks past an oil tanker train stationed at a railway station in Ghaziabad, on the outskirts of New Delhi, India, February 1, 2019.

The oil price has risen sharply on Tuesday.

Moreover, economic sanctions introduced by Washington against Venezuela and Iran are bolstering crude prices by enforcing a global supply limit.

Numerous region's refineries are new and are optimized to process heavy and sour crudes.

Brent oil increased by 2.5% to just under $ 63 per barrel. Most recently he worked with, where he provided market analysis on economic data and corporate news.

Venezuela's heavy crudes, such as Merey, have few close substitutes, with the nearest being grades such as Brazil's Marlim, Mexico's Maya, Canada's Bow River and Cold Lake, or Iraq's Basra Heavy.

Basra Heavy, as assessed by Argus Media, was at $60.17 a barrel on Tuesday, while Bonny Light was at $64.38.

Refining profits for gasoline have plunged since mid-2018, going negative in Asia and Europe, amid tepid demand growth and a surge in supply.

The U.S. administration reimposed sanctions against the Islamic Republic's oil exports in November in a bid to ramp up pressure against Tehran's nuclear program, but extended waivers to eight major buyers of Iranian crude, majority in Asia.

Like Iran, another founding member of the Organization of the Petroleum Exporting Countries, Venezuela's oil industry has been blighted by mismanagement, unrest, political instability, diplomatic isolation and sanctions.

The fear of crude prices dropping into the $40s or lower has faded.

Brent has struggled to sustain gains this month following its best ever start to a year on concern that booming shale output will undermine cuts by OPEC and its partners, and fears that the U.S.

Refineries are built to handle a certain quality of crude, and those which process so-called heavy crude from Venezuela, Canada or the Middle East can not be easily converted to treat the light shale oil that is now being produced in greater quantities in the United States. The dense crudes are much more hard to refine and tend to contain significant quantities of sulfur and other impurities that are costly to remove.