Oil rises after two-day drop

WTI crude oil futures rose to above $56 per barrel on Thursday, following a two-day decline as markets assessed fresh US actions involving Venezuela.

Washington outlined plans to take long-term control over Venezuelan crude sales, starting with the release of stored oil and followed by supervised sales of future production.

Simultaneously, US authorities intensified sanctions enforcement by seizing additional Venezuelan-linked oil tankers. This followed President Trump’s statement that Venezuela would transfer between 30 and 50 million barrels of crude to the US, a move seen as adding supply to the world’s largest oil consumer.

Meanwhile, EIA data showed that US crude inventories fell by 3.8 million barrels last week, defying expectations for a build, though stocks at Cushing rose and gasoline and distillate inventories increased well above forecasts.

Softer US labor data also reinforced expectations for further Federal Reserve rate cuts, supporting the demand outlook.