FX.co ★ Oil Retreats on Venezuelan Supply

WTI crude futures declined by over 1% on Friday, edging closer to $65 per barrel and reversing the gains made in the previous session. This downturn is attributed to the anticipated increase in oil supply from Venezuela, which has exerted downward pressure on prices. The United States is poised to grant permission to partners of Venezuela's state-owned oil company, PDVSA, including Chevron, to operate under specific conditions. This move has the potential to raise Venezuelan exports by more than 200,000 barrels per day. Such an increase could alleviate the current tightness in the heavier crude market, a development that would prove advantageous for U.S. refiners. Earlier in the week, oil prices received some support from export disruptions in the Black Sea and at Turkey's Ceyhan port, although these flows have since resumed. Additionally, prospects for new trade agreements between the U.S. and countries like Japan and the EU injected some optimism into the market. Nonetheless, with the OPEC+ meeting on the horizon and no significant policy changes anticipated, the outlook for WTI remains steady yet cautiously optimistic.