Brent crude futures have increased in excess of 1% on the back of reports that Venezuela will potentially suspend some crude oil exports.

However, reports suggesting the US President Donald Trump administration approached Saudi Arabia and other Organization of the Petroleum Exporting Countries (OPEC) producers to boost supply weighed on further gains in prices.

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Markets witnessed a rally in global oil price Brent to nearly $80 a barrel amid declining production from Venezuela.

The news agency stated that Venezuela’s state firm PDVSA is contemplating the possibility of declaring force majeure on some exports after a slump in output from its oil fields and tanker bottlenecks at ports.

Brent crude soared 78 cents to stand at $76.16 a barrel, while US West Texas Intermediate (WTI) crude futures jumped 33 cents to trade at $65.85 a barrel, Reuters reported.

“At the moment, the oil price is being driven by OPEC and views on how much and how quickly OPEC plus will raise output.”

It comes after Brent reached its lowest level since 8 May and WTI dropped to a near two-month low on 5 June.

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Mitsubishi risk manager Tony Nunan was quoted by the news agency as saying: “It’s a tug of war between the loss of supply from Venezuela and Iran and the potential output increase from OPEC and US shale.

“$80 is a temporary ceiling for oil until we hear from OPEC.”

OPEC producers and Russia will meet in Vienna later this month to decide on the quantum of increase in output to offset production shortfalls in Iran and Venezuela.

Energy Aspects analyst Virendra Chauhan said: “At the moment, the oil price is being driven by OPEC and views on how much and how quickly OPEC plus will raise output.”

Data released by the American Petroleum Institute on 5 June indicated that US crude stockpiles dipped by two million barrels.