FX.co ★ Oil Rises After Two-Day Drop

On Thursday, WTI crude oil futures climbed past $56 per barrel, rebounding after a two-day decline as markets reacted to new US measures regarding Venezuela. Washington revealed intentions to exercise long-term control over Venezuelan oil sales, starting with the release of stored oil and moving forward with supervised sales of future production. Concurrently, US authorities increased their enforcement of sanctions by seizing more oil tankers associated with Venezuela. This came after President Trump's announcement that Venezuela would transfer 30 to 50 million barrels of crude to the US, a strategy perceived as boosting supply to the world's largest oil consumer. Meanwhile, data from the EIA indicated that US crude inventories decreased by 3.8 million barrels last week, contrary to expectations of a build, although stocks at Cushing rose, and there was a significant increase in gasoline and distillate inventories compared to forecasts. Additionally, weaker US labor data bolstered predictions for further interest rate cuts by the Federal Reserve, thus enhancing the outlook for demand.