Oil Prices Slip as US Role in Venezuela's Industry Weighs on Markets

Crude oil futures have taken a hit of nearly 1% on weak global cues. On the Multi Commodity Exchange (MCX), crude futures for September delivery slipped Rs 49 to trade at Rs 7,915 per barrel. The October contract also traded lower by Rs 56, or 0.71%, to Rs 7,797 per barrel.

The weakness in prices is attributed to reports of a possible US role in Venezuela's oil industry. Market participants are assessing the possibility of higher output from the South American producer following talks between US Secretary of State Marco Rubio and Venezuela's acting president Delcy Rodriguez.

Globally, Brent oil futures for October delivery fell 1% to trade at USD 88.95 per barrel on the Intercontinental Exchange. The West Texas Intermediate (WTI) crude futures for the same month contract also slipped nearly 1% to USD 83.02 per barrel on the New York Mercantile Exchange.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said that Brent crude is trading lower in global markets as Washington has shifted from military to economic pressure, reducing fears of a wider war.