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Crude Extends Losses on Venezuela Sanction Relief

OIL

Front month crude extends this morning’s pull back driven by the removal of a broad array of sanctions against Venezuela’s oil sector in response to a Tuesday deal between Maduro and his political opponents aimed at fairer elections next year.

  • Brent DEC 23 down -1.6% at 90.02$/bbl
  • WTI NOV 23 down -1.3% at 87.17$/bbl
  • “We can easily add 200,000 barrels a day to 250,000 barrels a day, because we have the infrastructure already in place,” said Alexis Medina, a PDVSA.
  • Rystad estimates that Venezuela could increase its production by 200kbpd within six months if sanctions are relieved.

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