Key Moments
- Brent March futures rose 0.5% to $60.24, while WTI climbed 0.5% to $56.17 by 23:01 ET (04:01 GMT), rebounding after two days of losses.
- Meanwhile, a Wall Street Journal report said the Trump administration plans long-term oversight of Venezuela’s oil sector to target a $50 per barrel price.
- Additionally, U.S. crude inventories fell by 3.8 million barrels, far exceeding expectations for a 1.2 million barrel draw.
Oil Prices Rise, Then Ease on Venezuela Headlines
Crude prices rose during Asian trading on Thursday. However, gains faded after a Wall Street Journal report suggested the United States may pursue long-term control of Venezuelan oil production.
This rebound followed two straight sessions of sharp losses. Those declines stemmed from growing fears that global supply could increase further.
At the same time, fresh inventory data supported prices. Ongoing fighting between Russia and Ukraine also helped maintain a modest risk premium.
Benchmark Futures Performance
| Contract | Move | Price (per barrel) | Time | Recent Trend |
|---|---|---|---|---|
| Brent oil futures (March) | +0.5% | $60.24 | 23:01 ET (04:01 GMT) | Fell over 1% in each of the prior two sessions |
| West Texas Intermediate (WTI) | +0.5% | $56.17 | 23:01 ET (04:01 GMT) | Fell over 1% in each of the prior two sessions |
Trump’s Long-Term Venezuela Oil Strategy Weighs on Sentiment
The Wall Street Journal reported that President Donald Trump is planning a multi-year strategy to control Venezuela’s oil industry. The goal is to push prices toward $50 per barrel.
According to the report, the administration is weighing options to take control of state-owned producer Petróleos de Venezuela SA (PdVSA).
Earlier this week, Trump said Venezuela would deliver between 30 million and 50 million barrels of oil to the United States. He estimated the shipments could be worth as much as $3 billion.
In addition, reports suggest the administration is encouraging U.S. oil companies to expand operations in Venezuela. Chevron Corp is expected to play a leading role.
Currently, Chevron remains the only major U.S. producer operating in Venezuela. It holds a special license that allows limited activity despite sanctions.
Supply Outlook and Investor Concerns
Investors remain cautious about a potential surge in Venezuelan output. Many fear it could worsen an already fragile global supply balance.
These concerns come as markets brace for a possible oil glut in 2026. As a result, sentiment remains fragile.
However, analysts say any increase in exports will likely take time. Political instability following the U.S. military action may slow progress.
Meanwhile, the Financial Times reported that U.S. oil companies want firm guarantees from Washington before committing capital.
U.S. Inventory Draw Provides Support
Government data released Wednesday showed U.S. crude stocks fell by 3.8 million barrels in the week ending January 2.
This drop far exceeded forecasts for a 1.2 million barrel decline. It was also nearly double the previous week’s draw.
As a result, the data eased concerns about weakening demand in the world’s largest oil-consuming economy.
Macro Data in Focus
Looking ahead, traders are watching key U.S. economic releases. The December nonfarm payrolls report, due Friday, will be closely followed.
The data could shape expectations for interest rates. In turn, it may influence energy markets in the near term.
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