Oil steadies ahead of Biden Middle East trip
Send a link to a friend
[October 17, 2023] By
Paul Carsten
LONDON (Reuters) - Oil steadied on Tuesday after sliding more than $1
the day before ahead of a trip by U.S. President Joe Biden to the Middle
East that is likely to involve balancing support for Israel with
containing a regional escalation of its war with Hamas.
Brent crude futures were up 28 cents at $89.93 a barrel, while U.S. West
Texas Intermediate crude (WTI) was up 12 cents at $86.78 a barrel as of
1048 GMT.
Both oil benchmarks surged last week on fears the conflict in the Middle
East could widen, with global benchmark Brent gaining 7.5% in its
largest weekly gain since February. However, they slipped back on
Monday.
U.S. President Joe Biden will make a high-stakes visit to Israel on
Wednesday as the country prepares to escalate an offensive against Hamas
militants that has set off a humanitarian crisis in Gaza and raised
fears of a broader conflict with Iran.
Biden's trip, however, is a balancing act between showing support for
Israel's war on Hamas and trying to rally Arab states to help head off a
wider regional war, after Iran pledged "preemptive action" from the
"resistance front" of its allies which include the Hezbollah movement in
Lebanon.
"The risks remain, with Iran's foreign minister warning the possible
expansion of the war on other fronts is approaching the inevitable
stage," ANZ Research said in a note on Tuesday.
Elsewhere, Venezuela's government and opposition are set to resume
long-suspended talks on Tuesday which President Nicolas Maduro said
would benefit the 2024 election, a move that could lead to Washington
easing sanctions, multiple sources said.
[to top of second column] |
A worker pumps fuel at a gas station of state-run oil firm PDVSA, in
Caracas, Venezuela, December 2, 2022. REUTERS/Gaby Oraa/File Photo
Since 2019, the U.S. has sanctioned oil exports from Venezuela, a
member of the Organization of Petroleum Exporting Countries (OPEC),
to punish Maduro's government following elections in 2018 that
Washington considered a sham.
The U.S. government has been seeking ways to increase the flow of
oil to world markets to alleviate high prices. But any real oil
output increase by Venezuela will take time due to lack of recent
investments.
Meanwhile, the CEO of Saudi Arabia's Saudi Aramco said on Tuesday
the company is able to ramp up oil production within weeks if
needed, as global consumption is set to rise to a fresh record by
year-end.
OPEC+, which comprises OPEC countries and leading allies including
Russia, has been cutting output since last year in what it says is
preemptive action to maintain market stability.
(Reporting by Paul Carsten in London and Sudarshan Varadhan in
Singapore; Editing by Kim Coghill, Ed Osmond and Jan Harvey)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|