Global oil prices declined on Wednesday following renewed expectations of increased supply after United States President Donald Trump announced that Venezuela would deliver up to 50 million barrels of crude oil to the US.
Data from oilprice.com indicated that Venezuela and the United States had reached an arrangement allowing the South American nation to export crude estimated to be worth about $2bn to the US market.
Brent crude fell below the $60-per-barrel mark on Wednesday evening after Trump disclosed that Venezuela’s “interim authorities” would supply between 30 million and 50 million barrels of “high quality” oil to the United States at prevailing market prices, a volume valued at close to $2bn.
Reuters reported that the agreement with the US-recognised leadership in Venezuela is expected to increase the availability of heavy crude for refineries along the US Gulf Coast. The development could also reduce illicit shipments of discounted Venezuelan crude to China.
Shipping data reviewed by Reuters on Tuesday showed that Venezuela’s state oil company, PDVSA, has been unable to send oil cargoes to Asia for nearly a week, as the US “oil quarantine” on Venezuela remains in effect.
Chevron remains the only Western oil producer authorised by the US Treasury to operate in Venezuela, with shipments directed to the US Gulf Coast. In contrast, exports to Asia have stalled, leaving China — Venezuela’s largest crude buyer — receiving reduced volumes.
Bloomberg reported that Chinese oil purchasers have scaled back imports of Venezuelan crude after the price discount between Brent and the country’s flagship Merey blend narrowed from $15 per barrel last month to $13 per barrel currently.
The increase in Venezuelan oil prices follows the imposition of a US naval blockade that has disrupted tanker movements to and from the country. US Secretary of State Marco Rubio stated earlier in the week that the blockade was unlikely to be lifted in the near term.
Against this backdrop, Trump said on Tuesday that Venezuela would be “turning over” between 30 million and 50 million barrels of crude oil to the United States.
The US President has also demanded that Venezuela’s interim leader, Delcy Rodriguez, grant the US government and private companies “total access” to the country’s oil industry. Analysts believe the crude supplied to the US could come from floating storage that has accumulated since the naval blockade began off Venezuela’s coast in mid-December.
Venezuela entered 2026 facing deep political uncertainty following the capture of President Nicolas Maduro by US forces. Maduro and his wife, Cilia Flores, were transferred to the United States to face federal charges.
He was later arraigned before a US court, where prosecutors reinstated longstanding allegations, including narco-terrorism conspiracy and cocaine trafficking offences, which Maduro has denied.
In the aftermath of the arrest, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed the role of Acting President, citing the need to maintain institutional continuity. The unfolding political crisis has intensified scrutiny of Venezuela’s economy and oil-reliant energy sector, even as Trump stated that the United States would run the oil-rich nation.
As of Wednesday evening, Brent crude traded at $59.99 per barrel, while West Texas Intermediate slipped to $56.10. Market analysts project that prices could fall further as additional Venezuelan crude enters the US supply chain.
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