Global crude oil prices slipped beneath the psychologically important $60-per-barrel threshold on Wednesday, as mounting expectations of excess supply weighed heavily on market sentiment. Analysts increasingly believe the global oil market is heading toward a prolonged glut, a view reinforced by fresh projections from Goldman Sachs pointing to further price weakness into 2026.
Market pressure has been amplified by the decision of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to leave production levels unchanged. While the group has historically acted to stabilize prices through coordinated output cuts, its latest stance has instead reinforced concerns that supply will continue to outpace demand, particularly amid rising geopolitical friction between key producers such as Saudi Arabia and the United Arab Emirates.
Further adding to bearish momentum, traders have priced in the possibility of increased Venezuelan crude entering global markets following political developments surrounding President Nicolas Maduro. Expectations of renewed Venezuelan exports have heightened fears of additional barrels flooding an already oversupplied market.
Goldman Sachs now forecasts Brent crude and West Texas Intermediate (WTI) to average $56 and $52 per barrel, respectively, in 2026. According to the investment bank, the market is set to face an oversupply of approximately 2.0 million barrels per day as the final wave of large-scale supply growth works its way through the system.
As of Wednesday trading, Brent crude slipped 0.6% to $59.98 per barrel, down from $60.36 at the previous close. Meanwhile, U.S. benchmark WTI declined 0.9% to $56.26 per barrel, compared with $56.78 in the prior session.
In a significant geopolitical development, U.S. President Donald Trump announced on Tuesday that Venezuela’s interim authorities had agreed to transfer between 30 million and 50 million barrels of sanctioned oil to the United States for sale at prevailing market prices.
“I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 million barrels of high-quality, sanctioned oil to the United States of America,” Trump said in a statement posted on his social media platform, Truth Social.
He added that proceeds from the oil sales would be overseen by the U.S. presidency, stating that the funds would be used in a manner that benefits both Venezuela and the United States.
Energy market analysts interpreted the remarks as a clear signal that Washington is leaning toward policies that expand supply rather than restrict it—an approach that further deepens concerns about global oversupply at a time when demand growth remains fragile.
Meanwhile, Fitch Ratings said recent U.S. actions involving Venezuela have so far had limited implications for North American oil producers. The ratings agency noted that while policy shifts could eventually support Venezuelan production growth and offer opportunities for U.S. exploration and production companies, any meaningful increase in output would require substantial investment and time.
Fitch added that investment incentives remain weak given the current state of global oversupply, making rapid production gains unlikely in the near term.
On the inventory front, the American Petroleum Institute reported a surprise drawdown in U.S. commercial crude stockpiles. According to the industry group, inventories fell by 2.8 million barrels last week, defying market expectations for a 1.2 million-barrel increase.
The unexpected decline signaled resilient demand in the U.S. market and helped prevent oil prices from sliding further. Investors are now awaiting official inventory figures from the U.S. Energy Information Administration, due later on Wednesday, for confirmation.
