RIYADH: Oil futures fell more than $2 a barrel on Monday, with US West Texas Intermediate crude hitting an 11-month low, as protests in top importer China over strict COVID-19 curbs fueled demand concerns.
Brent crude dropped $2.16, or 2.6 percent, to trade at $81.47 a barrel at 0230 GMT, after diving to $81.16 earlier in the session — its lowest since Jan. 11.
US WTI crude slid $2.08, or 2.7 percent, to $74.20 a barrel. It fell as far as $73.82 earlier — its lowest since Dec. 27, 2021.
Both benchmarks, which hit 10-month lows last week, have posted three consecutive weekly declines. Brent ended the latest week down 4.6 percent, while WTI fell 4.7 percent.
Chevron can resume key role in Venezuela’s oil output, exports
Chevron Corp. has received a US license allowing the second-largest US oil company to expand its production in Venezuela and bring the South American country’s crude oil to the US.
The decision grants broader rights for the last big US oil company still operating in US-sanctioned Venezuela. However, it restricts any cash payments to Venezuela, which could reduce the oil available to export.
License terms are designed to prevent state-run oil firm Petróleos de Venezuela, known as PDVSA, from receiving proceeds from Chevron’s petroleum sales, US officials said. The license lasts for six months and will be automatically renewed monthly thereafter, the US Treasury said.
The US authorization “brings added transparency to the Venezuelan oil sector” and allows Chevron to benefit from sales of “oil that is currently being produced” by its joint ventures with PDVSA, the California-based company said in a statement.
(With input from Reuters)
