Oil Prices Stay Steady as Traders Watch U.S. Fuel Stocks and Venezuela Developments

Post by : Saif Nasser

Oil prices stayed almost flat on Thursday after falling for two days, as traders around the world tried to understand new data from the United States and changes in global oil flows.

On Thursday morning, the international price benchmark Brent crude was trading around $60 a barrel, and U.S. West Texas Intermediate was near $56.

This quiet movement followed a recent drop in oil prices, which many investors linked to expectations that global oil supply will be more than enough to meet demand in 2026. Some experts even expect a large surplus of oil in the first half of the year, with more supply from many producing countries.

A key reason for the steadiness in oil prices was the latest report on U.S. fuel stocks. The United States Energy Information Administration said that crude oil inventories fell more than expected, but at the same time, gasoline and diesel stocks rose strongly. Higher fuel stocks can signal lower demand for crude oil in the short term, which can weigh on prices.

At the same time, developments in Venezuela have added uncertainty to global markets. The United States has struck a deal to gain access to up to $2 billion worth of Venezuelan crude oil. Some oil that was originally heading for China could instead be rerouted to the United States. The U.S. government also seized two oil tankers linked to Venezuela, one sailing under a Russian flag, as it intensifies efforts to control regional oil shipments.

These moves are part of a broader shift in U.S. policy on Venezuelan oil. U.S. officials are negotiating with Venezuela’s state oil company and are working with companies like Chevron to expand oil exports under new licences. As a result, more Venezuelan oil could be sold into global markets.

The mix of news has left traders cautious. On one side, the build in fuel stocks and higher expected supply from around the world could push oil prices lower. On the other side, changing oil flows from Venezuela and geopolitical actions are keeping some volatility in the market.

For now, the oil market remains balanced between these opposing pressures. Investors will continue to watch U.S. fuel data and global political developments closely. Any change in either could push prices up or down in the coming days.