Oil Prices Recover as Market Attention Turns to Venezuela

Oil prices rebounded on Thursday, rising around 2 per cent after two days of losses, as investors weighed developments in Venezuela and concerns over supplies from Russia, Iraq, and Iran. Brent crude climbed $1.21, or 2 per cent, to $61.17 per barrel, while U.S. West Texas Intermediate gained $1.02, or 1.8 per cent, to $57.01 per barrel.

The recent drop in prices came amid expectations of increased supply after U.S. President Donald Trump indicated that Venezuela would provide up to 50 million barrels of crude to the United States. Under the arrangement, Venezuelan authorities agreed to export oil valued at approximately $2 billion to the U.S., which briefly pushed Brent below $60 per barrel.

Tensions have escalated as the U.S. seized two Venezuela-linked oil tankers in the Atlantic, one flying the Russian flag, in a move aimed at controlling oil flows in the Americas. Analysts note that oil prices are now recovering toward levels last seen before these disruptions.

Meanwhile, the U.S. Senate began voting on a resolution to restrict further military action in Venezuela without congressional approval. Energy officials have also highlighted the need to balance commercial interests between the U.S. and China in Venezuela, while U.S. oil companies such as Chevron, ConocoPhillips, and ExxonMobil are expected to expand operations in the country.

Additionally, a Russia-bound oil tanker in the Black Sea was reportedly targeted by a drone attack, forcing it to seek assistance from the Turkish Coast Guard and alter its course. No injuries or environmental damage were reported.