Oil prices fell on Wednesday on expectations of increased supply after United States President Donald Trump said Venezuela would hand over up to 50 million barrels of crude to the US.
According to oilprice.com, the United States and Venezuela reached an agreement under which the South American country would export oil valued at about $2bn to the US.
Following the announcement, Brent crude slipped below $60 per barrel, with Trump saying Venezuela’s “interim authorities” would supply between 30 million and 50 million barrels of high-quality crude at market prices.
Reuters reported that the deal would increase the supply of heavy crude to US Gulf Coast refineries and could further reduce Venezuela’s illicit crude exports to China.
Venezuela’s state oil company, PDVSA, has been unable to ship oil cargoes to Asia for nearly a week as the US “oil quarantine” continues, according to shipping data reviewed by Reuters. Chevron remains the only Western oil firm authorised by the US Treasury to operate in Venezuela, exporting crude to the US Gulf Coast.
Shipments to Asia have stalled, while China—Venezuela’s largest oil customer—has reduced purchases. Bloomberg reported that the discount on Venezuela’s flagship Merey crude narrowed from $15 per barrel last month to $13, making the oil less attractive to Chinese buyers.
The price adjustment follows a US naval blockade that has disrupted tanker movements to and from Venezuela, a measure US Secretary of State Marco Rubio said would not be lifted anytime soon.
Trump said on Tuesday that Venezuela would be “turning over” up to 50 million barrels of oil to the US, insisting that interim leader Delcy Rodríguez grant Washington and private companies full access to the country’s oil industry. The exports are expected to be drawn from floating storage that has built up since the blockade began in mid-December.
Venezuela entered 2026 amid political uncertainty after US forces captured President Nicolás Maduro and transferred him to the United States to face federal charges, which he has denied. Following his detention, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed office as Acting President.
The developments have renewed focus on the future of Venezuela’s oil-dependent economy, even as Trump said the US would oversee the country’s oil operations.
By Wednesday evening, Brent traded at $59.99 per barrel, while WTI fell to $56.10, with analysts projecting further downside as additional crude flows into the US market.
