Crude oil prices fell on Wednesday after President Donald Trump said the United States reached a deal to import up to $2 billion worth of Venezuelan crude, a move that is expected to boost supplies to the world’s largest oil consumer.
Brent futures were down 35 cents, or 0.6%, at $60.35 a barrel, and U.S. West Texas Intermediate futures were down 52 cents, or 0.9%, at $56.61.
Both benchmarks extended the declines of more than $1 the day before, as market players expect ample global supply this year.
The agreement between Washington and Caracas could initially require that shipments that were destined for China be diverted, sources told Reuters. Venezuela has millions of barrels of crude oil loaded on oil tankers and in storage tanks that it has not been able to ship since mid-December due to an export blockade imposed by Trump.
The blockade was part of a pressure campaign by Washington against the government of Venezuelan President Nicolás Maduro, which culminated in his capture over the weekend. Senior Venezuelan officials called Maduro’s capture a kidnapping and accused the United States of trying to steal the country’s vast oil reserves.
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Venezuela will “deliver” between 30 and 50 million barrels of “sanctioned oil” to the United States, Trump wrote in a social media post on Tuesday.
“Trump’s release on Venezuelan oil imports put downward pressure on crude oil prices earlier today, but market participants now appear to believe those volumes could be lower and prices are paring earlier losses,” said UBS analyst Giovanni Staunovo.
Morgan Stanley analysts estimated the oil market could reach a surplus of up to 3 million barrels per day in the first half of 2026, based on weak demand growth last year and increased supply from OPEC and non-OPEC producers.
With information from Reuters
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