Global oil prices fell on Wednesday amid expectations of a surge in supply after United States President Donald Trump announced that Venezuela would hand over up to 50 million barrels of crude to the US.
According to oilprice.com, Venezuela and the US reached a deal under which authorities in Caracas agreed to export oil valued at $2 billion to the United States.
Brent crude dropped below $60 per barrel on Wednesday evening after Trump said “interim authorities” in Venezuela would provide between 30 million and 50 million barrels of high‑quality oil to the US at market price.
The agreement with Venezuela’s US‑compliant leadership is expected to boost the supply of heavy crude to US Gulf Coast refineries and potentially curb illicit Venezuelan shipments of discounted crude to China, Reuters reported.
Venezuela’s state oil firm PDVSA has been unable to ship cargoes to Asia for nearly a week as the US “oil quarantine” continues.
Shipping data reviewed by Reuters showed that Chinese buyers have reduced intake of Venezuelan oil, with the discount between Brent and Venezuela’s flagship Merey crude narrowing from $15 per barrel last month to $13 per barrel now, according to Bloomberg.
Chevron remains the only Western oil company authorised by the US Treasury to operate in Venezuela, shipping crude directly to the US Gulf Coast.
Naval Blockade and Political Upheaval
The price shift follows the US naval blockade that has disrupted tanker traffic to and from Venezuela. Secretary of State Marco Rubio said earlier this week that the blockade would not be lifted anytime soon.
Trump insisted that Venezuela’s interim leader Delcy Rodríguez grant the US and private companies “total access” to the country’s oil industry.
The crude exports could be drawn from floating storage that has accumulated since the blockade began in mid‑December.
Venezuela entered 2026 amid heightened political uncertainty after US forces captured President Nicolás Maduro and transferred him to the US with his wife, Cilia Flores, to face federal charges.
Maduro has denied longstanding allegations of narco‑terrorism conspiracy and cocaine trafficking revived in US courts.
Following his detention, Venezuela’s Supreme Court announced that Vice President Rodríguez had assumed office as Acting President, citing the need for institutional continuity.
The developments have placed renewed focus on Venezuela’s oil‑dependent economy and its future under US influence.
As of Wednesday evening, Brent crude traded at $59.99 while WTI dropped to $56.10. Analysts project prices could dip further as more Venezuelan oil flows into the US market.
Rate, Like 👍, Comment 💬, Share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
