(Investing) – Oil prices fell Thursday, handing back some of the previous session’s gains after the United States’ seizure of a sanctioned oil tanker off the coast of Venezuela triggered fresh fears about supply disruptions, while investors digested new forecasts from the International Energy Agency.
At 08:00 ET (13:00 GMT), Brent Oil Futures expiring in February fell 1.1% to $61.53 per barrel and West Texas Intermediate (WTI) crude futures dropped 1.2% to $57.78 per barrel.
Tanker seized off coast of Venezuela
A tanker — identified by maritime sources as the Skipper — was intercepted near Venezuelan waters in a coordinated operation involving the U.S. Coast Guard, the FBI, and Homeland Security.
The seizure was the first of an oil cargo from Venezuela, which has been under U.S. sanctions since 2019, and the Trump administration’s first known action against a Venezuela-related tanker since he ordered a massive military buildup in the region.
It underscored the potential for further disruptions to Venezuelan oil exports and injected a renewed supply-risk premium into the market.
More than 30 U.S.-sanctioned oil vessels doing business in Venezuela could face punishment by Washington after the Coast Guard seized a supertanker carrying Venezuelan crude for export, according to shipping data, reported by Reuters.
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IEA cuts 2026 global supply excess
The International Energy Agency lifted its forecast for global oil demand next year, in a monthly report, while also trimming its expectations for supply growth, signaling a narrower surplus than previously forecast in 2026.
The Paris-based group expects world oil demand to rise by 830,000 barrels a day in 2025, citing an improving macroeconomic and trade outlook, and has also lifted its 2026 forecast by 90,000 b/d, to 860,000 b/d year-on-year.
Turning to the supply side of the equation, IEA cut its global oil supply growth by 100,000 b/d to 3 million b/d for 2025 and by 20,000 b/d for 2026 to 2.4 million, to 106.2 million b/d and 108.6 million b/d, respectively.
World supplies will exceed demand by 3.815 million barrels a day in 2026, the group added, which would still mark a record, but is below last month’s estimate by 231,000 barrels a day.
US crude stocks decline – EIA
U.S. Energy Information Administration weekly data showed that commercial crude inventories declined by 1.812 million barrels, beating forecasts of a 1.1mb drop. The modest crude draw indicates that supply remains slightly tighter than expected.
Gasoline inventories, however, rose during the week, reflecting a seasonal easing in consumption following the peak autumn driving period. Distillate stocks — which include diesel and heating oil — also increased.
Fed cuts rates with several members dissenting
Elsewhere, the Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points — its third cut this cycle — lowering the target range to 3.5–3.75%.
The decision came despite divisions within the central bank, with several members dissenting from the move.
The rate cut weakened the U.S. dollar and lowered borrowing costs, boosting demand prospects for commodities.
Ayushman Ojha contributed to this article
