Oil prices stabilized thanks to hopes that the US would ease sanctions on Venezuela

Oil prices stabilized on Tuesday after falling more than $1 on Monday. US crude oil is currently trading around 86.95 USD/barrel, down about 0.1%. Markets expect the US will ease sanctions on oil-producing Venezuela and Washington is stepping up efforts to prevent the Palestinian-Israeli conflict from escalating.

Multiple sources said Monday that the Venezuelan government and opposition plan to resume long-stalled talks on Tuesday; President Maduro said this would benefit the 2024 election, a move that could prompt Washington to ease sanctions.

Oil prices rose sharply last week on fears the conflict in the Middle East could widen, with Brent crude rising 7.5%, its biggest weekly gain since February.