Oil edges higher on Venezuela risks, Dollar caps upside

WTI crude oil futures traded above $56 per barrel on Thursday, recovering from a two-day decline as falling US inventories and geopolitical developments lent support. EIA data showed US crude stockpiles dropped by 3.8 million barrels last week, highlighting tighter near-term supply. Market focus also remained on US actions targeting Venezuelan crude, with Washington outlining plans to oversee long-term oil sales and stepping up sanctions enforcement through additional tanker seizures. These moves kept supply risks in focus. However, gains were limited by a steady US dollar, with the dollar index hovering near 98.5 after two consecutive sessions of gains amid mixed US economic data. In the domestic market, MCX January crude oil futures rose 0.5% to ₹5067 per barrel, while attention turns to US jobless claims and the December employment report for further cues.

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