Brent crude futures fell $1.24, or 1.4%, to $89.65 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.03, or 1.2%, to $86.66 a barrel.
According to Reuters, this week, after nearly a year, the Venezuelan government and the opposition will return to negotiations in Barbados to find a way out of Venezuela's long-standing economic and political crisis.
Meanwhile, multiple sources said the US has reached a preliminary deal to ease sanctions on Venezuela's oil industry in exchange for a competitive and supervised presidential election in Venezuela next week.
William Jackson, chief emerging markets economist at Capital Economics, said the deal would help lift Venezuela’s oil production from its very low levels. But he said it would require huge investment to bring output back to levels seen a decade ago. “This is unlikely to have a significant impact on the global oil market deficit in the near term,” Jackson said.
Last week, both Brent and WTI crude oil prices rose sharply on concerns that conflict in the Middle East could spread, with global benchmark Brent crude rising 7.5% - its biggest weekly gain since February.
Andrew Lipow, president of Lipow Oil Associates, commented that the cooling of oil prices in the first trading session of the week (October 16) was a moment of relaxation to welcome events in the Middle East.
Negotiations with Venezuela could boost exports of crude already in storage, Lipow said, but he also expressed concern that Venezuela’s crumbling energy infrastructure could hamper future increases in oil production.
Regarding tensions in the Middle East, traders said the conflict between Israel and Hamas has so far been focused on the Gaza Strip so supplies in the short term will not be affected yet.
Domestic gasoline prices
Domestic retail prices of gasoline on October 17 are as follows:
E5 RON 92 gasoline is not more than 21,907 VND/liter. RON 95 gasoline is not more than 23,044 VND/liter. Diesel oil not more than 22,410 VND/liter. Kerosene not more than 22,464 VND/liter. Fuel oil not exceeding 16,238 VND/kg. |
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