Venezuela Considers Leaving OPEC: 100-Year Oil Deal with US on the Table

The possibility of Venezuela leaving OPEC and entering into a long-term oil agreement with the United States could create supply-side uncertainty, potentially supporting prices in the short term. Technically, the price is above the 20-day and 50-day moving averages, with the RSI in neutral territory and the MACD near its signal line, indicating that upward momentum persists. However, since the news has not yet been confirmed and geopolitical risks are prone to volatility in pricing, the impact may remain limited. While a short-term upward move seems possible, confirmation from volume and news flow is needed for a strong breakout.

The possibility of Venezuela leaving OPEC and entering into a long-term oil agreement with the United States could support prices in the short term by introducing flexibility on the supply side. Technically, the price is just below the 20-day SMA and above the 50-day SMA, with the RSI in neutral territory; the MACD is slightly below the signal line but positive. This news could serve as a strong catalyst to break the current sideways trend, but the lack of a finalized deal and OPEC dynamics create uncertainty. Therefore, any upward movement should be limited and approached with caution.

The news raises the possibility that Venezuela may leave OPEC and strike a long-term oil deal with the US. This scenario could put downward pressure on oil prices amid expectations of increased global supply. XOM shares have already lost 4.4% in the last 24 hours, with RSI at 24.4, indicating oversold conditions. MACD is in negative territory and below the signal line, suggesting weak short-term momentum. With technical indicators and the news combined, the stock is likely to continue its downward trend in the near term, although oversold conditions could trigger a technical rebound.

The possibility of Venezuela leaving OPEC and signing a 100-year oil agreement with the United States could exert downward pressure on oil prices amid expectations of increased supply. Chevron's stock has already declined 1.8% in the last 24 hours, with the RSI at 42 indicating weak momentum. The MACD is issuing a sell signal, and the price is trading below both the 20-day and 50-day moving averages. This development could intensify selling pressure in the energy sector in the short term, but the impact may remain limited as the deal would take time to finalize.