Oil prices edged lower on Thursday as investors locked in profits and reassessed the demand outlook, with signs of elevated supply and soft demand outweighing unresolved geopolitical tensions.
International benchmark Brent crude was trading at $59.87 per barrel at 11.09 a.m. local time (0809 GMT), down around 0.5% from the previous close of $60.17.
US benchmark West Texas Intermediate (WTI) also decreased by about 0.5% to $56.24, compared to $56.52 in the prior session.
Data from the US Energy Information Administration (EIA) pointed to fragile demand conditions in the world's largest oil consumer.
Commercial crude oil inventories fell by around 1.3 million barrels, below market expectations of a 2.4 million-barrel draw, while gasoline stocks surged by about 4.8 million barrels. Average daily US crude output also edged up by 10,000 barrels.
Together, rising fuel inventories, steady-to-higher US production, and the absence of immediate supply disruptions from major producers have reinforced market perceptions that global supply remains elevated.
Despite ongoing uncertainty surrounding the Russia-Ukraine war and the continuation of Western sanctions, markets are not pricing in a major disruption to Russian crude flows, limiting the geopolitical risk premium.
Tensions between the US and Venezuela also failed to lift prices in a sustained manner, as no material disruption to oil flows has been reported so far.
US President Donald Trump on Wednesday defended his administration's naval blockade of Venezuela, arguing the move is necessary to protect American interests and prevent unauthorized activity in the region.
"We're not gonna let anybody going through that shouldn't be going through. They took all of our energy rights—they took all of our oil from not that long ago ... they illegally took it," Trump told reporters.
His remarks came one day after he announced a "total and complete blockade" of all sanctioned oil tankers entering or leaving Venezuela, branding the government of Nicolas Maduro a "foreign terrorist organization."
Trump framed the action as a response to what he described as the illegal seizure of American energy assets, repeating long-standing grievances about Venezuela's oil sector.
In response, Venezuelan President Nicolas Maduro issued an urgent appeal to Colombia for military solidarity.
According to Rystad Energy, Venezuela produces around 1.1 million barrels per day of crude oil. While any disruption could affect supplies, analysts note that the volume is relatively small in global trade terms. However, more than 67% of Venezuela's output is heavy crude, making it harder to replace.
For now, market focus remains on demand indicators and inventory trends, with geopolitical uncertainty failing to translate into sustained price support.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr