On Tuesday, WTI crude futures fell more than 1.5 percent to below $113 per barrel, easing from daily highs of $115.5 per barrel.
This comes amid hopes that Venezuela will be able to supply more oil to the market after the US extended Chevron’s limited license, allowing the oil company to continue operating in Venezuela and negotiate future business, temporarily lifting a ban on such discussions.
Oil prices were higher early in the session as investors awaited news on a proposed EU ban on Russian oil, which would further tighten global supply.
On Monday, EU foreign ministers failed to persuade Hungary to lift its veto on the EU’s oil embargo against Russia, and some diplomats believe a summit on May 30-31 will be the time for a deal.
Meanwhile, China’s fuel demand is expected to rebound after Shanghai announced plans to end the painful Covid-19 lockdown in early June.
Nonetheless, China processed 11 percent less crude oil in April than a year ago, according to the most recent data.