SINGAPORE: Oil prices steadied on Thursday after recent losses, while Asian stocks retreated as investors weighed escalating geopolitical tensions and mixed US labour market data.
US officials said Washington may need to control Venezuela’s oil sales and revenue indefinitely to stabilise its economy and rebuild its oil sector. The comments came as the US seized two Venezuela-linked oil tankers in the Atlantic Ocean, one sailing under a Russian flag, as part of President Donald Trump’s push to influence oil flows in the Americas.
Developments in Venezuela have dominated market headlines following the toppling of former president Nicolas Maduro, with most of the impact so far reflected in commodities. Oil prices had fallen earlier in the week on expectations of increased Venezuelan crude output but rebounded on Thursday.
US crude rose 0.54% to $56.29 a barrel, while Brent futures gained 0.55% to $60.29.
“The market’s negative reaction to Trump’s comments on controlling Venezuela’s oil looks misplaced,” said Daniel Hynes, senior commodity strategist at ANZ. “US control of oil sales could imply continued sanctions or restrictions in the short term, which would be bullish for prices.”
Equities in Asia traded mostly lower after a strong start to 2026. MSCI’s Asia-Pacific shares outside Japan fell 0.6%, Japan’s Nikkei dropped 1.2%, and China’s CSI300 lost 0.8%.
US stock futures were mixed, with Nasdaq futures down 0.35% and S&P 500 futures up 0.22%. EUROSTOXX 50 futures edged down 0.12%, while FTSE futures slipped 0.4%.
“Markets are taking a breather after a strong start to the year,” said Charu Chanana, chief investment strategist at Saxo. “Geopolitical headlines are driving sentiment, particularly China’s dual-use export ban to Japan and concerns over rare earth supplies.”
Shares of Japanese chemical firms fell, while Chinese rivals gained after China’s commerce ministry launched an anti-dumping probe into imports of chemicals used in chipmaking, heightening tensions between the two countries.
Investors are also focused on the US nonfarm payrolls report due on Friday, which could influence expectations for Federal Reserve policy. Goldman Sachs forecasts a 70,000 increase in December payrolls, above consensus, and expects the unemployment rate to edge down to 4.5%.
Recent data suggest the US labour market remains in a “no hire, no fire” phase. Analysts said subdued hiring has kept labour conditions balanced, reinforcing expectations of modest job growth.
Markets continue to price in two additional Fed rate cuts this year. Currency moves were limited, with the euro steady at $1.1681, sterling at $1.3458, and the yen slightly firmer at 156.67 per dollar. The dollar index was little changed at 98.71.
Spot gold fell 0.71% to $4,420.43 an ounce.
— Reuters
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