Crude fell after the US government announced it plans to allow Chevron Corp. to negotiate its oil license with Venezuela’s national producer.
West Texas Intermediate settled below $113 on Tuesday. The Biden administration is going to calibrate its sanctions policy in a bid to promote dialog with Venezuela, a US official told reporters. The Treasury is allowing Chevron to negotiate its license with PDVSA, but more drilling or an increase in revenue for the regime is not allowed. Futures extended their tumble at the end of the session with Federal Reserve Chair Jerome Powell saying he won’t hesitate to raise rates above neutral if needed.