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Speaking at a news conference in Delhi on Tuesday, US President warned of more US sanctions on the Venezuelan oil sector, in an attempt to stem financing to President Nicolas Maduro’s government.

Key Quotes:

“You will be seeing something on that in the not too distant future.” 

“There could be very serious sanctions.”

“You are going to see in a little while. You are asking a question right in the middle of us doing something.”

Last week, the Trump administration imposed sanctions last week on Rosneft Trading SA as it emerged as a key intermediary for the sale of Venezuelan oil.

Oil market implications:

Oil prices are making recovery attempts despite the rise in the US weekly Crude Stocks, as reported by the American Petroleum Institute (API). The pullback could be in tandem with the rebound seen in the risk assets such as Wall Street futures and Treasury yields while the above news also likely lent support.