Oil prices plummet amidst prospects of eased U.S. sanctions and Venezuela's political talks

Oil futures dropped over $1 per barrel on Monday due to expectations of eased U.S. sanctions on Venezuelan crude exports. Venezuela's government and opposition are set to resume talks after almost a year. Sources indicate the U.S. has reached a preliminary deal to ease sanctions on Venezuela's oil industry in exchange for a monitored presidential election next year.

Israeli airstrikes in Gaza escalated on Monday after U.S. ceasefire efforts failed. However, at present, the Israel-Hamas conflict did not seem to pose an immediate threat to oil supplies, according to market analyst.

Brent crude futures settled at $89.65 a barrel, down $1.24, or 1.4%.

U.S. West Texas Intermediate crude (WTI) fell $1.03, or 1.2%, closed at $86.66 a barrel.