Oil prices rose a bit after a larger-than-expected drop in US crude inventories
Oil prices rose on Thursday after a two-day decline, as investors turned to futures while watching developments in Venezuela following a larger-than-expected drop in US crude inventories.
Brent and WTI recovered after two days of decline. Brent crude futures rose 24 cents, or 0.40%, to $60.20 a barrel as of 03:43 GMT, while WTI crude rose 22 cents, or 0.39%, to $56.21 a barrel.
Both indicators fell more than 1% for a second consecutive day on Wednesday as market participants expect a plentiful global supply this year. Analysts estimate a supply surplus of up to 3 million barrels per day in the first half of 2026.
The declines led some investors to seize buying opportunities in futures on Thursday, and prices rose slightly, but ongoing concerns about a supply surplus are limiting upward momentum.
Markets are watching developments in Venezuela, and the downward trend is likely to continue for now.
According to data from the Energy Information Administration (EIA), U.S. crude oil inventories fell by 3.8 million barrels to 419.1 million barrels in the week ending January 2. Analysts had expected an increase of 447,000 barrels.
On Wednesday, the U.S. seized two Venezuela-linked oil tankers in the Atlantic Ocean; one of them was sailing under a Russian flag. This was part of President Donald Trump’s aggressive move to dictate the flow of oil in the Americas and force Venezuela’s socialist government into becoming an ally.
On Tuesday, Washington announced a deal with Caracas to gain access to Venezuelan crude oil for up to $2 billion. Trump wrote on social media on Tuesday that Venezuela would “deliver” 30 to 50 million barrels of “sanctioned oil” to the U.S.
This would provide a flow of Venezuelan oil, slowed by the US blockade of sanctioned tankers entering and leaving the country, acting as a relief valve. Redirecting Venezuelan crude to the US would alleviate Venezuela's need to reduce production due to storage restrictions.
Sources said the deal might initially require redirecting cargo destined for China.
Chinese independent refineries, which consume a large portion of the oil the country imports from Venezuela, could turn to Iranian and Russian oil to fill the gap.
According to reports, Trump and his advisors are planning an initiative to dominate Venezuela's oil industry in the coming years, with the president reportedly telling aides he believes their efforts could help lower oil prices to $50 a barrel.
The report, citing people familiar with the matter, stated that one plan under consideration involves the US establishing some control over Venezuela's state oil company PDVSA, purchasing and marketing a large portion of its oil production.
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