Oil steadies as market weighs Venezuela impact

Oil prices steadied on Thursday after two days of declines as investors assessed a large stock build in US fuel inventories while also monitoring developments in Venezuela.

Brent crude futures were up 6 cents at $60.02 a barrel by 0847 GMT. US West Texas Intermediate crude was also up 6 cents at $56.05.

Both benchmarks fell more than 1% for a second day on Wednesday, with market participants expecting abundant global supply this year. Analysts at Morgan Stanley forecast a surplus of as much as 3 million barrels per day in the first half of 2026.

The supply signals weighed on prices as reports of the United States asserting its control over Venezuela’s oil exports suggested even higher supply. Increased US refined product inventories also pressured prices, offsetting lower crude stocks, said PVM analyst Tamas Varga.

US gasoline and distillate stocks increased by more than analyst expectations in the week ended January 2, the Energy Information Administration said on Wednesday.

On Tuesday, Washington announced a deal with Caracas to gain access to up to $2 billion of Venezuelan crude. The deal initially could require the rerouting of cargoes that were bound for China, sources told Reuters.

Chinese independent refiners that consume much of the country’s Venezuelan imports could switch to Iranian oil to make up the shortfall.

The US seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, one sailing under Russia’s flag, as part of President Donald Trump’s aggressive push to dictate oil flows in the Americas and force Venezuela’s socialist government to become an ally.

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