Oil prices edged lower on Friday as markets weighed the prospect of renewed US investment in Venezuela’s oil sector against persistent concerns about global oversupply.
Brent crude fell by 0.4% to $62.42 a barrel, down from the previous close of $62.67. Prices had firmed late on Thursday after stabilising near $60 a barrel earlier in the session.
US benchmark West Texas Intermediate (WTI) also weakened, slipping 0.3% to $58.27 a barrel in early trading, compared with $58.47 in the prior session.
Market sentiment was shaped by developments linked to Venezuela after the US Senate advanced legislation designed to prevent President Donald Trump from using military force in the country. The bill is expected to reach the Senate floor for a final vote next week.
In an interview with Fox News, Trump said he plans to meet oil company executives at the White House, arguing that US firms would rebuild Venezuela’s oil infrastructure.
He said companies would invest at least $100 billion, adding that Venezuela holds “incredible” volumes of exceptionally high-quality oil.
Analysts say US involvement could support Venezuela’s production capacity over the long term, but caution that political instability, prolonged underinvestment and ageing infrastructure are likely to delay any meaningful recovery.
White House spokesperson Karoline Leavitt said Energy Secretary Chris Wright is holding a follow-up meeting with oil executives on Friday, highlighting growing engagement between Washington and the energy industry over Venezuela’s oil sector.
Expectations that Venezuelan barrels could gradually return to global markets have reinforced concerns about oversupply, keeping downward pressure on crude prices.
On the supply side, data from the US Energy Information Administration showed commercial crude inventories fell by about 3.8 million barrels last week to 419.1 million barrels.
Strategic petroleum reserves, which are excluded from commercial inventories, rose by 200,000 barrels to 413.5 million barrels, while gasoline inventories jumped by around 7.7 million barrels to 242 million barrels.
Although the figures point to a modest tightening in crude supply, elevated stock levels and a softening demand outlook continue to cap expectations of any major disruption to global oil markets.
Oil prices remain volatile as investors balance shifting expectations around US labour market conditions with broader geopolitical developments, with attention now turning to US nonfarm payrolls data due later in the day for further direction.
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