Oil advanced after a six-week run of losses on speculation that the Federal Reserve is done raising interest rates and the possibility that US sanctions on Venezuelan supply could be tightened up once again.
Benchmark Brent rose toward $80 a barrel after capping the worst run of weekly declines in two years, while West Texas Intermediate neared $75. Investor expectations the Fed’s next move will be a cut has gathered strength this quarter, hurting the US dollar to make commodities more attractive.
Venezuelan supply was also in focus after the White House said it was evaluating possible consequences after President Nicolás Maduro missed an end-November deadline to release detained Americans. The US struck a deal with Venezuela in October to lift some sanctions, including on oil, and there’s concern the six-month transaction license may not be renewed.
Oil just capped a back-to-back monthly decline as supplies from non-OPEC countries including the US ballooned, while the outlook for demand growth softened, Bloomberg reported.
The retreat came despite a move last week by the Organization of Petroleum Exporting Countries and its allies to deepen production cuts.
In the Middle East, meanwhile, Iranian-backed Houthi rebels claimed they targeted two Israeli ships in the Red Sea, part of a series of attacks against commercial vessels in international waters amid the war in Gaza. The US said one of its destroyers shot down three drones.
