Oil prices rose on Thursday after two days of declines as investors assessed Venezuela developments and reports on progress of proposed US sanctions legislation against countries doing business with Russia.
Brent crude futures were up 59 cents, or 0.98%, at $60.55 a barrel by 1038 GMT. US West Texas Intermediate crude gained 58 cents, or 1%, to $56.57.
Higher prices are led by the US President allowing the Russia sanctions bill to advance, as it raises fears of further disruption to Russian oil exports, said PVM analyst Tamas Varga. Republican Senator Lindsey Graham said on Wednesday that Trump had given the green light on the legislation, adding that the bill could be put to a vote as early as next week.
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. US gasoline and distillate stocks increased by more than analyst expectations in the week ended January 2, while crude stocks fell, 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.
