Global oil prices moved lower on Wednesday following indications that crude supply could increase after United States President Donald Trump announced plans involving large-scale Venezuelan oil exports to the US.
According to reports from oilprice.com, the United States and Venezuelan interim authorities reached an understanding that could see 30 million to 50 million barrels of crude oil, valued at approximately $2 billion, transferred to the US market.
Market Reaction and Price Movement
Brent crude slipped below the $60 per barrel mark in evening trading, reacting to Trump’s statement that Venezuela would provide what he described as “high-quality” oil at prevailing market prices. The announcement immediately raised expectations of increased supply, particularly for US Gulf Coast refineries that rely on heavy crude blends.
Reuters noted that the arrangement could also restrict Venezuela’s ability to ship discounted oil to China, potentially reshaping global crude trade flows.
Impact on Venezuela’s Oil Exports
Venezuela’s state-owned oil company, PDVSA, has struggled to move shipments to Asian markets in recent days, with shipping data indicating a near-complete halt in cargo movements. The disruption follows the continuation of a US-led naval blockade, described by American officials as an “oil quarantine.”
Chevron remains the only Western energy company authorized by the US Treasury to operate in Venezuela, with its crude exports directed exclusively to the US Gulf Coast. Meanwhile, China—Venezuela’s largest oil customer—has reduced intake volumes as price discounts narrowed.
Bloomberg data shows that the price gap between Brent crude and Venezuela’s benchmark Merey crude has tightened from $15 per barrel last month to about $13, reducing the incentive for Chinese buyers.
Political Backdrop and Energy Outlook
The oil market reaction is unfolding against a backdrop of major political upheaval in Venezuela. The country entered 2026 amid uncertainty following the capture of President Nicolás Maduro by US forces and his subsequent transfer to the United States to face federal charges, alongside his wife, Cilia Flores.
Maduro has denied allegations including narcotics trafficking and terrorism-related offenses. Following his detention, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed office as Acting President to ensure continuity of governance.
President Trump has since stated that the US would assume operational control over Venezuela’s oil sector, demanding unrestricted access for American and private companies. Analysts say some of the oil earmarked for export could come from floating storage accumulated since the blockade began in mid-December.
As of Wednesday evening, Brent crude traded at $59.99, while West Texas Intermediate (WTI) fell to $56.10. With additional Venezuelan oil expected to enter the US market, analysts warn that further price declines may follow.
