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Oil Surges as U.S. Signals Trade Thaw, Venezuela Buyers Scramble

  • Sanctions targeting PDVSA prompt Valero to buy Canadian crude
  • Heating fuel demand ahead of bitter U.S. cold adds to support
Bloomberg business news
U.S. Treasury Secretary Steven Mnuchin speaks about sanctions on Venezuela’s state-owned oil company.Source: Bloomberg
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Oil prices jumped higher after U.S. Treasury Secretary Steven Mnuchin signaled a truce is possible in the trade war with China amid multiplying threats to global crude supplies.

Futures gained 2.5 percent in New York on Tuesday. The White House may remove tariffs on Chinese goods if Beijing presents sufficient concessions, Mnuchin told Fox Business Network. The remarks came just hours after the U.S. announced penalties aimed at ousting Venezuelan President Nicolas Maduro by strangling the country’s crude exports.