Oil prices stabilize amid Middle East uncertainty, Venezuela deal talk
Investing.com — Oil prices steadied Tuesday after the previous session’s selloff as traders keep an eye on developments in the Middle East as well as the potential for additional supply from Venezuela.
By 09:20 ET (13.20 GMT), the U.S. crude futures traded 0.1% lower at $85.23 a barrel, while the Brent contract dropped 0.1% to $89.62 a barrel.
U.S. President Joe Biden is set to the Middle East later this week in a likely attempt to contain a regional escalation of Israel’s war with Hamas.
Biden leaves later Tuesday, amid reports Jordan will host a four-party summit in Amman on Wednesday with the U.S. President and Egyptian and Palestinian leaders expected to discuss the «dangerous» repercussions of the war in Gaza for the region.
This has put the situation on hold for a day at least, delaying worries that an Israeli ground invasion into Gaza could draw other regional countries and groups into the war, and resulting in a tight trading range.
Both contracts had fallen around $1 a barrel on Monday on a Reuters report that the United States had reached a preliminary deal with Venezuela to ease sanctions surrounding its oil exports if Venezuela's government, lead by President Nicolas Maduro, returns to political negotiations with the country's opposition, almost a year after the last meeting.
The U.S. has sanctioned oil exports, since 2019, from Venezuela, a member of the Organization of Petroleum Exporting Countries, to punish Maduro's government following highly-disputed elections in 2018.
The U.S. government has been seeking ways to increase the flow of oil to world markets to alleviate high prices.
Economic data released earlier Tuesday showed that U.S. retail sales increased more than expected in September, suggesting
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