Oil prices climbed more than 3% on Thursday, following two consecutive days of declines, as investors assessed developments in Venezuela and expressed concerns over supply from Russia, Iraq, and Iran.
Brent crude futures rose by $2.03, a gain of 3.39%, settling at $61.99 per barrel.
West Texas Intermediate (WTI) crude futures for February delivery increased by $1.77, or 3.16%, closing at $57.76 per barrel.
The United States seized two Venezuela-associated oil tankers in the Atlantic on Wednesday, one of which was flying a Russian flag, as part of President Donald Trump's aggressive push to control oil flows in the Americas and force the Venezuelan government into an alliance.
The US has been escalating its blockade of sanctioned vessels and those traveling to and from this OPEC member nation since a military raid on Caracas last Saturday, which forcibly captured Venezuelan President Nicolás Maduro.
"The market is rebounding, with crude benchmarks returning to levels near where they closed last Friday, before the US apprehended Maduro," analysts from energy consulting firm Ritterbusch and Associates noted in a report.
"It is not surprising that this major event has had little impact on energy markets, as it could take years for significant volumes of Venezuelan crude to reach the US Gulf Coast," Ritterbusch stated.
In a media interview published Thursday, Trump suggested the US could oversee Venezuela and control its oil revenues for years to come.
The US Senate advanced a resolution on Thursday that would prohibit Trump from taking further military action against Venezuela without congressional authorization.
US Energy Secretary Chris Wright indicated that both the US and China have room for a balanced role in Venezuela to permit commercial activity, but Washington will not allow other nations to assume primary control over the South American country.
In the interview, Wright also said he expects Chevron to rapidly expand its activities in Venezuela, with other US oil giants ConocoPhillips and Exxon Mobil also looking to play a constructive role.
Four sources familiar with the matter informed Reuters that the Trump administration has invited the heads of commodity trading firms Vitol and Trafigura to the White House on Friday for discussions regarding Venezuelan oil sales.
Reliance Industries, operator of the world's largest refining complex, stated it would consider purchasing Venezuelan oil if sales to non-US buyers are permitted. Venezuela's oil production accounts for approximately 1% of global supply.
According to a notice from Lloyd's Intelligence and another independent maritime security source on Thursday, an oil tanker bound for Russia was attacked by a drone in the Black Sea, prompting it to request assistance from the Turkish Coast Guard and divert from its course.
Ukrainian President Volodymyr Zelenskyy said on Thursday that the text of a bilateral security agreement between Kyiv and Washington is "largely ready" and will be finalized with Trump.
Russia stated on Thursday that any Western troops sent to Ukraine would be "legitimate targets," following announcements from Britain and France about plans to deploy a multinational force there in the event of a ceasefire.
Oil futures also found support on Wednesday after US Republican Senator Lindsey Graham stated that Trump would allow a bipartisan sanctions bill targeting countries doing business with Russia to proceed through Congress.
Any agreement to lift sanctions on Moscow could enable Russia—the world's second-largest oil producer after the US—to export more energy.
Iraq's cabinet has approved a plan to nationalize the operations of the West Qurna 2 oilfield, one of the world's largest, a government move aimed at avoiding disruptions caused by US sanctions against its Russian shareholder, Lukoil.
Two company officials told Reuters that state-owned Basra Oil Company will take over operations at the West Qurna 2 field for 12 months.
Iranian state media reported on Thursday that President Masoud Pezeshkian warned domestic suppliers against hoarding or overpricing goods, as Tehran pushes forward with high-stakes subsidy reforms amid nationwide protests over economic hardship.
"Iran has a long history of protests, and there is no sign the regime is on the verge of collapse. But depending on how the situation develops, Iran's oil exports—equivalent to 2% of global supply—could be at risk," said Pavel Molchanov, an investment strategy analyst at Raymond James.
Iraq and Iran are OPEC's largest oil producers after Saudi Arabia.
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