Developments in the US and Venezuela cause fluctuations in the oil market

Oil prices climbed to a six-month high at the beginning of the week due to extreme cold weather conditions in the US negatively affecting production and rumors of a possible military intervention against Iran. Although the price of Brent crude saw $70.49 yesterday, it closed the day at $69.54. On the new day, as of 09:47, it is trading at $68.32, a decrease of 1.75 percent. At the same time, West Texas Intermediate (WTI) crude oil is at $64.02.

Statements from the US Department of the Treasury are reshaping the global oil market. Some sanctions related to the Venezuelan state oil company PDVSA have been lifted, providing authorization for transactions involving the sale and transport of oil originating from that country.

Another significant step taken in Venezuela was the National Assembly's unanimous approval of the "Organic Hydrocarbons Law reform bill." This reform aims to facilitate the participation of foreign companies in Venezuela's oil industry.

US President Donald Trump announced at a cabinet meeting held at the White House that Venezuelan airspace would be reopened to commercial flights and stated that major US oil firms have begun to take action for new projects in Venezuela.

All these developments have led to a decrease in supply concerns, creating downward pressure on oil prices. Despite the fluctuations in prices, high levels are being maintained, while the main agenda items in the markets include the US's possible military steps toward Iran and the upcoming meeting of the OPEC+ group.

No change in production levels is expected at the meeting that OPEC+ countries will hold this Sunday.

From a technical perspective, the $70 level is being monitored as resistance for Brent crude, while $60.50 is being watched as support.

News Source: 12punto