Tuesday 17 May 2022

Oil jumps to 7-wk high, then dips on hopes for Venezuela supply | Reuters

Oil jumps to 7-wk high, then dips on hopes for Venezuela supply | Reuters

Oil prices jumped over $115 a barrel on Tuesday, their highest in about seven weeks, as the European Union kept pushing for a ban on Russian oil imports that would tighten supply.

Prices retreated and were slightly lower after Reuters reported that sources said U.S. President Joe Biden's administration will authorize as soon as Tuesday for U.S. oil company Chevron Corp (CVX.N) to negotiate with Venezuelan President Nicolas Maduro's government, temporarily lifting a ban on such discussions. read more

"I don't think that's going to add a lot to the market anytime soon, but it shows desperation," said Phil Flynn, an analyst at Price Futures Group. Energy markets have been scrambling for supplies since Russia's invasion of Ukraine in late February, as governments and companies sanction Moscow's energy industry.

Brent crude fell 13 cents to $114.11 a barrel by 12:54 p.m. EDT (1654 GMT), and U.S. West Texas Intermediate (WTI) crude fell 6 cents to $114.14 a barrel.

Earlier, Brent rose to a session high of $115.69, its highest since March 28. WTI hit $115.56 per barrel, highest since March 24. Prices have gained by around 20% since Russia's invasion.

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