Oil prices jumped above $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 US President Joe Biden’s administration will authorise as soon as Tuesday for US oil company Chevron Corp to negotiate with Venezuelan President Nicolas Maduro’s government, temporarily lifting a ban on such discussions.
“I don’t think that’s going to add a lot to the market anytime soon, but it shows desperation,” said Price Futures Group analyst Phil Flynn.
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 1654 GMT, and US 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, the highest since March 24.
Published in The Express Tribune, May 18th, 2022.
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