Oil markets shrug off Venezuela's chaos for now

Where it stands: This morning, WTI crude was trading around $52.22 and Brent was at $60.57.

What they're saying: “Right now, the market is kind of keyed in to growth risks stemming from U.S.-China trade talks, and a slow start out of the gate for the U.S., given the government shutdown,” Macro Risk Advisors' Chris Kettenmann told the Wall Street Journal yesterday.

But, but, but: Prices inched up earlier this morning, and one analyst tells Reuters that the prospect of U.S sanctions against Venezuelan crude exports could jolt the markets soon.

• "For now, it's not being fully priced in, but I think this does provide a new upside risk for the market," Petromatrix's Olivier Jakob said.

The intrigue: Venezuela's collapsing production in recent years has already lessened its prominence in global markets.

• But it's still a very important player for U.S. refiners who use substantial volumes of Venezuelan heavy crude.
• "Refiners in Texas and Louisiana would be hard hit by sanctions on Venezuelan crude under consideration at the White House, a move that would leave U.S. oil companies struggling to find alternative supplies," per Bloomberg.

Go deeper:

• The "tremendous opportunity" in Venezuela
• Venezuela enters uncertain new phase
• The grim list of problems Venezuela faces in Maduro's 2nd term