Prices deflated further after comments from Federal Reserve Chairman Jerome Powell that to bring down inflation there could be economic hardship.
The central bank will “continue to push” to tighten US monetary policy until it is clear that inflation is slowing, the Fed chief said.
“Some of those comments dampened buying enthusiasm on the oil side,” said Phil Flynn, an analyst at Price Futures Group.
Brent crude fell $2.31, or 2%, to $111.93 a barrel, while US West Texas Intermediate (WTI) crude fell $1.8, or 1.6%, to $112.40 a barrel.
The price of US oil closed above that of a barrel of Brent, from the North Sea, for the first time since May 2020.
Sources told Reuters that The government of US President Joe Biden will authorize US oil company Chevron Corp to negotiate with the government of Venezuelan President Nicolás Maduro as soon as Tuesday, temporarily lifting a ban.
Before that, Brent had risen to a session high of $115.69, its highest since March 28. WTI had hit $115.56 a barrel, the highest price since March 24.
Figures showed that in April OPEC and its allies, which include Russia, produced less than the levels required by the deal to phase out record production cuts made during the worst of the pandemic in 2020.
Source: Ambito
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