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Analyst: Although the U.S.-Venezuelan oil agreement is putting pressure on oil prices, its impact on the light crude oil market remains limited.
Oil futures prices fell after Donald Trump reported that Venezuela would transfer 30 million to 50 million barrels of sanctioned oil to the United States for sale.Scott Shelton of TP ICAP noted in a report that this statement increases the likelihood of Venezuela’s interim president cooperating with the U.S. “To me, this is a bearish signal because it eliminates upside potential while increasing downside potential.”However, he added that the short-term impact of 30 million to 50 million barrels of heavy crude “wouldn’t really affect the balance of light crude.”
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