Oil prices fell slightly on Tuesday after falling more than $1 on Monday on hopes the United States would ease sanctions on significant producer Venezuela and as Washington stepped up efforts to prevent the war between Israel and Hamas from escalating.
Brent crude futures fell 5 cents to $89.60 per barrel as of 03:33 GMT, while West Texas Intermediate (WTI) crude fell 23 cents to $86.43 per barrel.
Since 2019, the United States has imposed oil export sanctions on Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), to punish the Maduro government following the 2018 elections that Washington views as fraudulent due to human rights violations.
The United States and Venezuela are preparing to resume long-stalled talks on Tuesday that could lead Washington to ease sanctions, sources said.
The Biden administration is exploring ways to increase the flow of oil to world markets to alleviate high prices. However, it will take time for Venezuela to truly increase its oil production due to the damage caused by the investments implemented.
Both oil benchmarks rose last week on fears that conflicts in the Middle East could widen; global benchmark Brent gained 7.5% weekly, the highest since February.
The spread of the war to other fronts is approaching the inevitable stage, Iran’s foreign minister warned. US President Joe Biden will make a high-risk visit to Israel on Wednesday as it prepares to escalate an offensive against Hamas militants that has sparked a humanitarian crisis in Gaza and raised the risk of a broader conflict with Iran.
