Oil prices steadied on Thursday after recent declines, as investors weighed developments in Venezuela and mixed U.S. labour market data that could influence global demand forecasts and policy outlooks. Brent crude rose above $60 per barrel while U.S. West Texas Intermediate climbed past $56, reflecting balanced reactions to geopolitical news and inventory reports. Traders also digested the U.S. government’s stance on controlling Venezuelan oil revenues, a move aimed at market stability but one that adds uncertainty to supply projections.

The market’s reaction to the potential increase in Venezuelan crude supply has been tepid, with some traders anticipating that formal policy actions could take time to materialise. Inventory data out of the United States also contributed to the narratives shaping prices, as EIA figures showed unexpected draws in crude stocks. While Brent and WTI strengthened slightly on Thursday, the overall trend this week has been choppy as market participants balance supply expectations with demand risks.

Analysts noted that broader commodity markets have been influenced by geopolitical headlines beyond energy, including rising tensions in South America and trade frictions in Asia. Such factors can exacerbate price volatility, especially in thin holiday or early-year trading sessions. Observers also highlighted that OPEC+ policy signals later this month will be crucial for longer-term pricing direction.

Bond markets remained relatively calm compared with commodity price swings, with yields drifting only slightly as investors balanced growth expectations and inflation risks. Currency markets, including the U.S. dollar, held mixed positions ahead of key macroeconomic indicators this week.

Financial strategists say that if supply concerns increase or demand data surprises to the upside, oil prices could see renewed gains; conversely, weak economic signals could keep energy under pressure in early 2026.

Source: Reuters