Oil rose in another volatile session as a deal expected to bring more Venezuelan crude to the market in the months ahead did little to assuage immediate concerns that the conflict in the Middle East will reduce supplies.
West Texas Intermediate settled above $89 a barrel after swinging in a nearly $3 range on Thursday. Analysts estimate that the US’s suspension of some restrictions on Venezuela, in return for plans for freer elections in the country, may enable the South American nation to pump 200,000 more barrels a day, a roughly 25% jump in output.
Still, traders are assessing how much and how quickly more Venezuelan oil could help markets, with a report saying OPEC+ doesn’t expect the development to require any change in its policy. Plunging inventories at Cushing, Oklahoma, now at a nine-year low, also are keeping traders on edge as the November WTI contract approaches its Friday expiry. That added to volatility in prices into settlement.
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