Global oil prices declined on Wednesday as markets reacted to expectations of increased supply following comments by United States President Donald Trump on a potential crude oil transfer from Venezuela.
Oil prices fell after Trump disclosed that Venezuela would provide between 30 million and 50 million barrels of crude oil to the United States, a volume estimated to be worth about $2 billion. According to oilprice.com, the arrangement stems from an agreement between the US and Venezuela’s interim authorities for the export of the oil at prevailing market prices.
Brent crude slid below the $60-per-barrel mark on Wednesday evening, while US benchmark West Texas Intermediate (WTI) also weakened. Traders responded to Trump’s statement that Venezuela would deliver “high-quality” oil to the US, a move expected to ease supply constraints.
Reuters reported that the deal with the US-aligned leadership in Venezuela could significantly boost the availability of heavy crude for refineries along the US Gulf Coast. The development may also limit Venezuela’s unofficial shipments of discounted crude to China.
Meanwhile, Venezuela’s state-owned oil company, PDVSA, has struggled to ship crude to Asia in recent days due to the ongoing US naval blockade. Data reviewed by Reuters indicated that oil cargoes bound for Asia have stalled, affecting China, Venezuela’s largest oil customer.
Although Chevron remains the only Western oil firm authorised by the US Treasury to operate in Venezuela and export crude to the US, shipments to Asian markets have slowed considerably. Bloomberg reported that Chinese refiners have reduced purchases as the price discount on Venezuela’s flagship Merey crude narrowed from $15 per barrel last month to about $13.
The rise in Venezuelan oil prices has been linked to the US naval blockade, which has disrupted tanker movements and is expected to remain in place, according to recent remarks by US Secretary of State Marco Rubio.
Trump reiterated on Tuesday that the United States would gain access to Venezuela’s crude, insisting that interim authorities grant full access to the country’s oil industry. Analysts believe the crude supplies to the US could come from floating storage that has accumulated since the blockade began in mid-December.
Venezuela entered 2026 amid deep political uncertainty following the capture of President Nicolás Maduro by US forces and his transfer to the United States to face federal charges. After his detention, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed office as Acting President.
The unfolding political and energy developments have placed renewed attention on Venezuela’s oil sector and global supply dynamics. As of Wednesday evening, Brent crude traded at $59.99 per barrel, while WTI stood at $56.10, with analysts warning that prices could fall further if additional Venezuelan oil enters the US market.
