Oil Falls as Venezuela, Iran Thaw Undercuts Supply Concerns
- US crude inventories dropped 6.1 million barrels last week
- WTI falls below $79 a barrel to lowest close since July
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Crude futures fell as signs of a thaw in US relations with sanctioned oil producers Iran and Venezuela undercut expectations of tightening global supplies.
West Texas Intermediate fell below $79 to the lowest closing price in more than a month. The Biden administration is in talks with Venezuela to explore easing sanctions that have hindered its oil sales if the country holds cleaner elections. Meanwhile, observed exports from Iran have surged this month as back-door diplomatic efforts with the US appear to be easing pressure on the Middle Eastern nation.