Oil falls by more than 1 dollar a barrel with the expectation of an agreement between the USA and Venezuela

Oil futures fell more than $1 a barrel on Monday on expectations that the United States and Venezuela could reach a deal to ease sanctions on Venezuelan exports of the commodity, while traders said Israel and Hamas did not appear to threaten supplies of oil in the short term. .

Brent crude futures closed at $89.65 a barrel, down $1.24, or 1.4%. U.S. West Texas Intermediate (WTI) crude fell $1.03, or 1.2%, to $86.66 a barrel.

Venezuela’s government and opposition will return to political talks this week after nearly a year, both sides said, as sources say the United States has reached a preliminary deal to ease sanctions on Venezuela’s oil industry in exchange for elections competitive and monitored presidential elections in the near future. South American country next year.

“The reported deal … would help lift the country’s oil production from very depressed levels,” said William Jackson, chief emerging markets economist at Capital Economics.

“But the sector requires significant investment to bring production back to levels seen just a decade ago,” Jackson added. “And it would not materially affect the global oil market deficit in the near term.”

Both oil price benchmarks rose last week on fears that conflict in the Middle East could worsen, with Brent rising 7.5%, its biggest weekly gain since February.

Source: Terra

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