Global oil prices fell on Wednesday on expectations of increased supply after United States President Donald Trump announced that Venezuela would hand over as much as 50 million barrels of crude oil to the United States.
According to oilprice.com, the United States and Venezuela reached an agreement under which authorities in the South American country would export crude oil valued at about $2bn to the US market.
Brent crude slipped below $60 per barrel on Wednesday evening following Trump’s statement that “interim authorities” in Venezuela would be supplying between 30 million and 50 million barrels of “high quality” oil to the United States at market price, a volume estimated to be worth close to $2bn.
Reuters reported that the agreement with the US-compliant leadership in Venezuela would increase supplies of heavy crude to refineries along the US Gulf Coast and could further reduce illicit shipments of discounted Venezuelan oil to China.
Venezuela’s state-owned oil company, PDVSA, has reportedly been unable to ship oil cargoes to Asia for almost a week, as the United States continues what has been described as an “oil quarantine” on Venezuela. Shipping data reviewed by Reuters on Tuesday confirmed the disruption.
Chevron remains the only Western oil firm authorised by the US Treasury to operate in Venezuela, with the company exporting Venezuelan crude directly to the US Gulf Coast. Shipments to Asia, however, have stalled, and China, Venezuela’s largest oil customer, has been receiving reduced volumes of crude.
It was also gathered that Chinese oil buyers have cut back their purchases of Venezuelan crude as the price discount between Brent and Venezuela’s flagship Merey blend narrowed from $15 per barrel last month to $13 per barrel currently, according to Bloomberg.
The rise in Venezuelan oil prices follows the US naval blockade, which has disrupted tanker movements to and from Venezuela. The blockade is not expected to be lifted soon, as earlier stated this week by US Secretary of State Marco Rubio.
The United States is now seeking access to Venezuelan crude, with Trump claiming on Tuesday that Venezuela would be “turning over” between 30 million and 50 million barrels of oil to the US.
President Trump has also insisted that Venezuela’s interim leader, Delcy Rodríguez, grant the US government and private companies “total access” to the country’s oil industry. The crude exports to the US are expected to come from floating storage facilities that have accumulated since the US imposed a naval blockade off Venezuela’s coast in mid-December.
Venezuela entered 2026 amid growing uncertainty following the capture of President Nicolás Maduro by United States forces and his transfer to the US, alongside his wife, Cilia Flores, to face federal charges.
Maduro was later arraigned before a US court, where prosecutors revived longstanding allegations, including narco-terrorism conspiracy and cocaine trafficking. He has denied all the charges.
After his detention, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed office as Acting President, citing the need to ensure institutional continuity. The unfolding political situation has renewed attention on the future of Venezuela’s economy and its oil-dependent energy sector, even as Trump stated that the United States would run the oil-rich nation.
By Wednesday evening, Brent crude was trading at $59.99 per barrel, while West Texas Intermediate fell to $56.10. Analysts project that prices could decline further as more Venezuelan oil flows into the US market.
