Brent oil falls amid easing of sanctions against Venezuela

Oil prices fell on October 19 morning on news of the easing of US sanctions against the oil and gas sector of Venezuela, Report informs referring to Interfax.

Washington has decided to lift restrictions on transactions with Venezuelan oil and gas for six months after Caracas concluded an agreement with the opposition, paving the way for new presidential elections in the country, the US Treasury said.

The suspension of American sanctions, according to experts, could lead to an increase in Venezuelan oil production by 200,000 barrels per day.

December Brent futures fell by $0.38 (0.42%) to $91.12 per barrel on the London ICE Futures exchange.

By this time, November futures for WTI fell in price on the New York Mercantile Exchange NYMEX by $0.13 (0.15%), to $88.19 per barrel.

On October 18, oil prices rose to their highest levels in more than two weeks due to the escalation of the conflict in the Middle East. The market's rise was also supported by data on falling oil reserves in the United States.

According to the US Department of Energy, commercial oil reserves in the country fell by 4.5 million barrels in the week ending October 13. Experts surveyed by S&P Global Commodity Insights, on average, expected a reduction of only 30,000 barrels.

Gasoline inventories decreased by 2.4 million barrels, distillates fell by 3.2 million barrels. Analysts on average predicted a decrease in gasoline reserves by 800,000 barrels and distillates by 900,000 barrels.

Inventories at the Cushing terminal, where oil traded on the NYMEX is stored, decreased by 758,000 barrels over the week.