Global oil prices fell in European trading for another session off two-week highs on active profit-taking.
Markets are expecting the U.S. to reduce sanctions on Venezuelan oil exports amid ongoing negotiations between the U.S. government and the Venezuelan opposition.
Traders are now awaiting the first U.S. crude oil inventory data, with expectations for another build last week.
U.S. crude fell 1% to $86.16 a barrel, with a session high of $87.05, while Brent fell 0.7% to $89.27 a barrel.
U.S. crude lost 0.8% on Monday, while Brent slid 0.9%, its first loss in three days, on profit-taking from two-week highs.
According to press sources, the US government has opened negotiations with the Venezuelan government, a move that could lead to a reduction in sanctions.
Since 2019, the US has imposed heavy sanctions on crude oil exports from Venezuela, a member of the OPEC organization, following Maduro’s 2018 election victory, which was deemed fraudulent due to human rights violations.
The US government is now looking for ways to improve and increase the supply of crude oil to the market, in order to lower prices and put pressure on OPEC+ members.