Brent Regains Balance as Markets Absorb Venezuela Oil Plan

Brent crude regained ground in a volatile session, erasing most of its early losses as markets began to absorb developments linked to Venezuela’s oil plan and the deal announced by former US President Donald Trump involving 50 million barrels of supply.

Prices of Brent initially slid more than 3.7%, falling below the $60-per-barrel mark to their lowest level in over three weeks, before traders reassessed the potential impact of additional supplies.

As investors evaluated the prospect of US companies returning to Venezuela, Brent recovered above $60 and was last trading near $61 per barrel, while West Texas Intermediate hovered around $57.

Data from the American Petroleum Institute showed US crude inventories falling by 2.8 million barrels in the week ended January 2, pointing to a relative improvement in demand in the world’s largest oil consumer.

Meanwhile, gasoline and distillate inventories rose, maintaining caution over future price movements amid concerns of global oversupply fueled by higher OPEC+ output and potential Venezuelan supply returns.

Analysts warn that downward pressure on Brent could persist in the medium term if Venezuelan crude is sold at discounted prices, with forecasts suggesting a surplus of up to three million barrels per day in the first half of 2026.