Global oil prices remained under pressure on Thursday as markets reacted to advancing negotiations between the United States and Venezuela that could pave the way for sanctioned Venezuelan crude to re-enter international trade flows.
At the time of reporting, Brent crude, the global benchmark, was trading around $59 per barrel, reflecting a modest 0.3% decline. Meanwhile, U.S. benchmark West Texas Intermediate (WTI) slipped 0.2% to $56.06 per barrel, down slightly from the previous session’s $56.20 close.
Price movements were largely restrained by mounting concerns over a potential supply glut, as investors weighed fragile global demand growth against the prospect of additional barrels returning to the market.
Venezuela’s state-owned oil company, Petróleos de Venezuela S.A. (PDVSA), confirmed that discussions with U.S. authorities over crude sales are progressing. According to the company, the negotiations are being conducted under commercial frameworks similar to existing arrangements involving international oil producers such as Chevron. PDVSA said the talks are guided by principles of legality, transparency, and mutual benefit.
Market participants interpreted these developments as increasing the likelihood that Venezuelan oil exports could rise, intensifying concerns that global supply may soon exceed demand.
The supply outlook was further reinforced by remarks from senior U.S. officials. President Donald Trump stated earlier this week that Venezuela’s interim authorities had agreed to transfer between 30 million and 50 million barrels of oil currently under sanctions to the United States. The crude would be sold at prevailing market prices, with proceeds intended to benefit both countries.
The White House also disclosed plans for President Trump to host U.S. oil executives on Friday, as part of broader discussions on potential private-sector participation in Venezuela’s energy industry. The initiative forms part of a selective sanctions-easing strategy aimed at facilitating the transportation and sale of Venezuelan crude and refined products in global markets.
White House spokesperson Karoline Leavitt said the U.S. government has already begun marketing Venezuelan crude internationally. She added that leading commodity trading firms and major global banks are expected to play key roles in executing the sales and arranging financing.
According to Leavitt, proceeds from the crude sales will initially be held in U.S.-controlled accounts at internationally recognized banks, with final allocation decisions resting with the U.S. government.
She also confirmed that Energy Secretary Chris Wright met with oil executives in Florida on Thursday, with a follow-up meeting scheduled at the White House. The engagements underscore growing coordination between Washington and the energy industry over Venezuela’s oil sector.
While the possibility of Venezuelan barrels returning to global trade has weighed on prices, losses were partially cushioned by data showing a decline in U.S. commercial crude inventories.
Figures from the U.S. Energy Information Administration (EIA) showed that commercial crude stockpiles fell by approximately 3.8 million barrels, or 0.9%, to 419.1 million barrels in the week ended January 2.
However, the broader supply picture remained mixed. Strategic Petroleum Reserve holdings increased by 200,000 barrels to 413.5 million barrels, while gasoline inventories surged by about 7.7 million barrels to 242 million barrels.
The rise in strategic reserves and fuel inventories highlighted ongoing supply abundance and subdued demand conditions, reinforcing bearish sentiment across the oil market.
