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Venezuela Oil Output Shift Weakens OPEC+ Pricing Power
7 Jan
Summary
- Crude oil futures for January delivery dropped Rs 110 to Rs 5,100 per barrel.
- US intervention in Venezuela increased US influence over crude operations.
- WTI crude fell 0.91% to $56.61, Brent crude down 0.59% to $60.34.
Crude oil futures saw a notable decrease on Wednesday, with January delivery contracts on the Multi Commodity Exchange (MCX) falling by Rs 110 to Rs 5,100 per barrel. This price drop reflects easing supply concerns in the global market. Analysts pointed to geopolitical shifts involving Venezuela as a primary driver for the downward trend in oil prices.
The recent US intervention in Venezuela's crude operations has brought these assets under greater American influence. This development is anticipated to bolster long-term US energy security and diminish the global cartel's pricing power. Consequently, the influence of OPEC+ in the international crude markets is expected to weaken significantly.
Globally, WTI crude for February delivery declined by 0.91% to $56.61 per barrel, while the March Brent contract fell 0.59% to $60.34 in New York. Reports indicate that US crude inventories fell by 2.8 million barrels, yet rising gasoline and distillate stocks also contributed to price pressures.
