Oil prices recovered modestly on Thursday after sliding earlier in the week as markets assessed the implications of escalating geopolitical developments surrounding Venezuela alongside mixed signals from the U.S. labour market.
Crude prices had come under pressure in recent sessions on expectations of increased Venezuelan supply following political developments in the South American nation.
However, prices stabilised as investors reassessed the likelihood that additional supply would return quickly to global markets. U.S. crude rose 0.54 percent to $56.29 per barrel, while Brent crude oil, against which Nigerian crude oil is priced, advanced 0.55 percent to $60.29 per barrel.
Market sentiment shifted after senior U.S. officials indicated that Washington intends to exert long-term control over Venezuela’s oil sales and revenue framework.
The U.S. administration has argued that sustained oversight of Venezuela’s energy sector is necessary to stabilise the economy, rebuild oil infrastructure, and align the country’s output with American strategic interests.
The renewed policy focus followed the seizure of two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, including one vessel sailing under a Russian flag.
The move forms part of President Donald Trump’s broader effort to dictate oil flows across the Americas and restrict unauthorised exports tied to sanctioned networks.
While initial reactions to the developments weighed on crude prices, analysts noted that prolonged U.S. control could limit near-term supply growth rather than accelerate it. This reassessment helped support Thursday’s rebound, as traders adjusted expectations around sanctions enforcement and production timelines.
Beyond commodities, global equity markets traded lower, particularly across Asia, as investors paused after a strong start to the year and reacted to geopolitical uncertainty.
Major Asian indices declined, with losses recorded in Japan, China, and across broader regional benchmarks. U.S. equity futures were mixed, reflecting cautious positioning ahead of key economic data.
Geopolitical risks continued to dominate investor focus, with additional concerns emerging from trade tensions in Asia and rising uncertainty around supply chains tied to advanced manufacturing. These factors contributed to a broader risk-off tone across equity markets, even as energy prices found modest support.
Attention also turned to the U.S. labour market, with investors awaiting the upcoming nonfarm payrolls report for further clarity on the Federal Reserve’s policy outlook.
Recent data releases painted a mixed picture, suggesting subdued hiring activity and limited labour turnover, reinforcing expectations of a slowing but stable job market.
Currency markets were largely unchanged as traders awaited clearer signals from economic data, while gold prices eased modestly as risk sentiment stabilised. The dollar index held steady, reflecting balanced positioning ahead of key macroeconomic releases.
Overall, oil’s modest recovery reflects a recalibration of market expectations, as investors weigh geopolitical intervention in Venezuela against realistic timelines for supply expansion, while remaining alert to broader economic and policy signals.
