Price action
Brent crude futures for December delivery fell 74 cents to $90.76 a barrel, while US West Texas Intermediate crude futures for November delivery, which expire tomorrow, Friday, fell 57 cents to $87.75 a barrel. As for the most active West Texas Intermediate crude contracts for December delivery, they fell by 0047 GMT by 51 cents to $86.76 a barrel.
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 Reuters that OPEC does not plan to take any immediate action regarding inviting Iran, a member of the organization.
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.
The flow of Venezuelan oil would calm global oil prices in light of escalating tensions in Gaza, sanctions imposed on Russia and decisions by the OPEC+ coalition to reduce production. However, Venezuela needs investments to boost production after years of sanctions.
It is noteworthy that Venezuela has the largest reserves of crude oil in the world at about 303 billion barrels, and its production in September is about 733 million barrels per day, and production is expected to increase after the lifting of sanctions to more than one million barrels per day by the end of 2024.
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