Global oil prices decline
American plans to ease sanctions on Venezuela
Oil prices declined over the past few days, as they erased the gains they achieved in the previous session following the lack of indications of support from the Organization of the Petroleum Exporting Countries (OPEC) for Iran’s call to impose an oil embargo on Israel, in addition to US plans to ease sanctions on Venezuela to allow the flow of more oil. of its oil globally.
Brent crude futures for December delivery fell by $1.3 to $90.20 per barrel, while US West Texas Intermediate crude futures for November delivery fell.
Oil price fluctuation
Oil prices jumped by about 2% 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 said that OPEC does not plan to take any immediate action regarding inviting Iran, a member of the organization.
Easing sanctions on Venezuela
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.
It is expected that the flow of Venezuelan oil will control global oil prices in light of the conflict between Israel and Hamas, the sanctions imposed on Russia, and the OPEC+ coalition’s decisions to reduce production. However, Venezuela needs investments to boost production after years of sanctions.