Oil prices rose on Thursday after two consecutive days of declines, supported by a larger‑than‑expected draw in U.S. crude inventories. The data provided some impetus for investors to buy futures while monitoring ongoing developments in Venezuela.
Brent crude futures climbed 24 cents, or 0.40%, to $60.20 a barrel by 0343 GMT, while U.S. West Texas Intermediate (WTI) crude gained 22 cents, or 0.39%, to $56.21 a barrel. Both benchmarks had fallen more than 1% for a second straight session on Wednesday, as market participants anticipated ample global supply this year. Analysts at Morgan Stanley estimate a surplus of as much as 3 million barrels per day in the first half of 2026.
The recent declines prompted some traders to take advantage of lower prices. “Pullback buying has nudged prices slightly higher, but persistent oversupply concerns are capping upside momentum. While markets are watching developments in Venezuela, the downward trend is likely to continue for now,” said Mitsuru Muraishi, analyst at Fujitomi Securities, who forecast WTI could fall below $54.
EIA Data Backs Oil Prices Rise
U.S. crude stocks dropped by 3.8 million barrels to 419.1 million barrels in the week ended January 2, according to the Energy Information Administration. This contrasted sharply with analysts’ expectations in a Reuters poll for a 447,000‑barrel increase.
Meanwhile, U.S. officials emphasized the need to control Venezuela’s oil sales and revenues indefinitely to stabilize its economy, rebuild its oil sector, and ensure alignment with American interests. On Wednesday, the U.S. seized two Venezuela‑linked oil tankers in the Atlantic Ocean, one sailing under Russia’s flag, as part of President Donald Trump’s push to dictate oil flows in the Americas and pressure Venezuela’s socialist government into cooperation.
On Tuesday, Washington announced a deal with Caracas granting access to up to $2 billion worth of Venezuelan crude. Trump wrote in a social media post that Venezuela would be “turning over” between 30 million and 50 million barrels of sanctioned oil to the U.S. Analysts at ING noted this arrangement could ease Venezuela’s storage constraints by redirecting oil flows previously blocked by U.S. sanctions, reducing the need for output cuts.
According to the Wall Street Journal, Trump and his advisers are planning a long‑term initiative to dominate Venezuela’s oil industry. The president reportedly believes his efforts could help push prices down to $50 a barrel. One proposal under consideration involves the U.S. exerting control over Venezuela’s state-run oil company, PDVSA, potentially acquiring and marketing the bulk of its production.
