Oil Prices Below $60 as U.S.-Venezuela Negotiate Crude Sales
Supply glut concerns kept oil prices movement tight on Thursday, with international benchmark Brent crude settling at $59 per barrel at the time of writing.
Oil prices came under renewed pressure on Thursday after Venezuela’s state-run oil company PDVSA said talks to sell crude to the US are progressing, while signals from Washington pointed to a selective easing of sanctions that could allow Venezuelan oil back into global markets
International benchmark Brent crude stood at $59 per barrel, down 0.3%. The US benchmark West Texas Intermediate (WTI) fell 0.2% to $56.06 per barrel, compared with $56.20 in the prior session.
PDVSA said negotiations with Washington are being conducted under frameworks similar to existing commercial arrangements with international producers such as Chevron and are based on principles of legality, transparency and mutual benefit.
Markets interpreted the developments as increasing the likelihood of additional Venezuelan crude supply, reinforcing concerns over a growing global surplus at a time when demand growth remains fragile.
The supply outlook was further underscored by comments from US officials. President Donald Trump said on Tuesday that interim authorities in Venezuela had agreed to transfer between 30 million and 50 million barrels of sanctioned oil to the US to be sold at market prices, with proceeds directed toward benefiting both Venezuela and the US.
The White House also said Trump will host a meeting with US oil executives on Friday to discuss potential industry involvement in Venezuela’s energy sector, part of a broader effort to selectively ease sanctions and enable the transport and sale of Venezuelan crude and refined products globally.
White House spokesperson Karoline Leavitt said the US has already begun marketing Venezuelan crude internationally, adding that leading commodity traders and major banks will be involved in executing sales and providing financing. She said proceeds from the sales will initially be held in US-controlled accounts at internationally recognized banks before being allocated at the discretion of the US government.
Leavitt also said Energy Secretary Chris Wright met with oil company executives in Florida on Thursday, with a follow-up meeting scheduled at the White House on Friday, highlighting growing engagement between Washington and the energy industry over Venezuela’s oil sector.
The prospect of Venezuelan barrels re-entering global trade flows has added to oversupply concerns, limiting upside for crude prices. On the other hand, data showing a draw in US commercial crude inventories helped cap further price declines.
US commercial crude stocks fell by about 3.8 million barrels, or 0.9%, to 419.1 million barrels in the week ended Jan. 2, according to data released by the Energy Information Administration on Wednesday.
However, strategic petroleum reserves — which are excluded from commercial inventories — rose by 200,000 barrels to 413.5 million barrels, while gasoline inventories jumped by around 7.7 million barrels to 242 million barrels.
The rise in strategic reserves and gasoline stocks underscored ample supply and soft demand, reinforcing bearish sentiment across oil markets. EUR Weakens After European Inflation Data, DYX Index Rebounds
