Global oil prices climbed on Thursday, snapping a two-day losing streak as investors shifted focus to unfolding developments in Venezuela and lingering supply concerns from key producers including Russia, Iraq, and Iran. The rebound followed sharp declines earlier in the week that were triggered by expectations of increased crude supply into the global market.
According to Reuters, Brent crude futures rose by $1.21, or about 2 per cent, to $61.17 per barrel, while US West Texas Intermediate (WTI) gained $1.02, or 1.8 per cent, to trade at $57.01 per barrel. The recovery came after oil prices slid on Wednesday, when comments by United States President Donald Trump fuelled expectations that Venezuela could soon release large volumes of crude to the US market.
Trump had said Venezuela would hand over between 30 million and 50 million barrels of what he described as “high-quality” oil to the United States at market prices, a deal estimated to be worth close to $2bn. Oilprice.com reported that Washington and Venezuelan interim authorities reached an agreement allowing the South American nation to export the crude as part of broader political and economic negotiations.
The situation escalated further after Reuters reported that the US seized two Venezuela-linked oil tankers in the Atlantic Ocean, including one sailing under Russia’s flag. The move followed a US-led military operation in Caracas that resulted in the capture of Venezuelan President Nicolás Maduro, with Washington tightening its blockade on sanctioned vessels linked to the OPEC member.
Analysts noted that oil markets were rebounding to levels seen before the removal of Maduro, suggesting traders were reassessing earlier fears of a supply glut. Meanwhile, US Energy Secretary Chris Wright said American oil majors, including Chevron, Exxon Mobil, and ConocoPhillips, were expected to expand operations in Venezuela. Separately, supply concerns intensified after reports that a Russia-bound oil tanker was hit by a drone attack in the Black Sea, highlighting ongoing geopolitical risks that continue to influence global energy markets.
source: punch