LONDON (Reuters) – Oil futures fell on Monday on reports that the U.S. had agreed a deal to ease sanctions on Venezuela, while investors continued to mull the potential impact of the escalating Israel-Hamas conflict on oil prices.
Brent futures were down $1.08, or 1.19%, at $89.81 a barrel at 1434 GMT. U.S. West Texas Intermediate (WTI) crude fell by $1.07, or 1.22%, to $86.62 a barrel.
The U.S. and Venezuelan governments reached a deal on Monday to ease U.S. sanctions on Venezuela’s oil industry in return for a competitive, monitored presidential election in Venezuela next year, the Washington Post reported.
Easing sanctions on Venezuela’s oil industry could result in increased oil supply.
But investors continue to weigh the significant geopolitical risks posed to oil markets by the Israel-Hamas war, and potentially higher oil prices as a result.
Both oil benchmarks had climbed nearly 6% on Friday, taking Brent 7.5% higher on the week and WTI up 5.9%.
