Crude oil fell as strikers in Venezuelan said they would meet with the government for talks aimed at ending a five-day strike that's disrupted shipments from the world's fifth-largest oil exporter.
Oil workers' success in disrupting an industry that supplies 40 percent of the government budget gives the opposition new strength, analysts said. The strike was aimed at ousting President Hugo Chavez, whose policies are blamed for pushing the economy into recession and increasing unemployment.
"They're finally talking and there's a significant chance that the strike gets solved over the weekend," said Tim Evans, senior energy analyst at IFR Pegasus in New York. "The strikers have made their political point and are damaging the economy. It's in nobody's interest to see the Venezuelan economy collapse."
Crude oil for January delivery fell US$0.36, or 1.3 percent, to US$26.93 a barrel on the New York Mercantile Exchange. Prices were up US$0.04 this week.
After the futures market closed the Venezuelan government said there would be no talks today. Jorge Valero, a government negotiator who is Venezuela's ambassador to the Organization of American States, gave no new date for talks and no reason for the delay.
"Informal discussions will be held to decide when talks will be held," he told reporters.
In London, the January Brent crude-oil futures contract fell US$0.34, or 1.3 percent, to US$25.46 a barrel on the International Petroleum Exchange. The contract rose US$0.30, or 1.2 percent, for the week.
Eleven of 21 tankers belonging to Petroleos de Venezuela SA, the state oil company, were anchored off Venezuelan ports, as their captains refused to deliver cargoes.
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