2023-10-19 14:14:19
On Thursday, oil prices fell about 1 percent as the United States eased sanctions on Venezuela, allowing more of its oil to flow globally, but fears that the Israeli military campaign in Gaza could escalate into a regional conflict limited the losses.
By 1307 GMT, Brent crude futures for December delivery fell by a dollar, equivalent to 1.1 percent, to $90.50 a barrel, while US West Texas Intermediate crude futures for November delivery, which expires tomorrow, Friday, fell by 93 cents, or 1.1 percent, to 87.39. Dollar per barrel.
As for the most active West Texas Intermediate crude contracts for December delivery, they fell 83 cents, or one percent, to $86.44 a barrel.
The United States issued a six-month license allowing transactions in the energy sector in Venezuela, an OPEC member, after reaching an agreement between the Venezuelan government and the opposition to ensure the integrity of the 2024 elections.
Experts said that the agreement is not expected to quickly increase Venezuelan oil production, but it may enhance profits by returning some foreign companies to their oil fields and providing their crude to a larger group of customers who pay in cash.
Oil prices jumped by about two percent in the previous session amid concerns about global supply disruption after Iran called for an oil embargo on Israel due to the conflict in Gaza and after the United States, the world’s largest oil consumer, announced a larger-than-expected withdrawal from stocks.
Sources told Archyde.com that OPEC does not plan to take any immediate action regarding inviting Iran, a member of the organization.
The flow of Venezuelan oil would calm global oil prices in light of the conflict between Israel and Hamas, the sanctions imposed on Russia, and the decisions of the OPEC+ coalition to reduce production. However, Venezuela needs investments to boost production after years of sanctions.
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