Oil prices declined on Wednesday as markets reacted to expectations of increased supply following comments by United States President Donald Trump indicating that Venezuela would transfer up to 50 million barrels of crude oil to the US.
Reports from oilprice.com revealed that the United States and Venezuela have reached an agreement under which the South American nation would export crude oil valued at approximately $2 billion to the US. The development heightened concerns about excess supply, pushing prices lower.
Brent crude fell below the $60-per-barrel mark on Wednesday evening after Trump disclosed that Venezuela’s “interim authorities” had agreed to provide between 30 million and 50 million barrels of what he described as “high-quality” oil to the United States at prevailing market prices. The volume is estimated to be worth close to $2 billion.
According to Reuters, the arrangement with the US-recognised leadership in Venezuela is expected to boost supplies of heavy crude to refineries along the US Gulf Coast. It could also further restrict Venezuela’s illicit shipments of discounted crude to China, which have been a major source of revenue for Caracas in recent years.
Shipping data reviewed by Reuters showed that Venezuela’s state-owned oil company, PDVSA, has been unable to send crude cargoes to Asia for nearly a week as the US-led “oil quarantine” of Venezuela continues. The restrictions have significantly disrupted tanker movements in and out of Venezuelan waters.
Currently, Chevron remains the only Western oil company authorised by the US Treasury to operate in Venezuela. The company exports Venezuelan crude directly to the US Gulf Coast. In contrast, shipments to Asia have come to a halt, and China Venezuela’s largest oil customer has been receiving reduced volumes of crude.
Bloomberg reported that Chinese buyers have scaled back purchases of Venezuelan oil partly due to shrinking price incentives. The discount between Brent crude and Venezuela’s flagship Merey blend has narrowed from around $15 per barrel last month to about $13 per barrel, reducing the attractiveness of Venezuelan supplies.
The recent rise in Venezuelan oil prices has been linked to the US naval blockade, which has disrupted tanker traffic and limited exports. US Secretary of State Marco Rubio stated earlier this week that the blockade is unlikely to be lifted in the near future.
As Washington seeks greater access to Venezuela’s oil resources, Trump reiterated on Tuesday that the country would be “turning over” between 30 million and 50 million barrels of crude to the United States. He also insisted that Venezuela’s interim leader, Delcy Rodríguez, grant the US government and private companies full access to the nation’s oil industry.
Industry sources suggested that the crude exports to the US could be drawn from floating storage facilities, where oil has accumulated since the naval blockade was imposed off Venezuela’s coast in mid-December.
Venezuela entered 2026 amid heightened political uncertainty following the capture of President Nicolás Maduro by US forces. Maduro and his wife, Cilia Flores, were transferred to the United States to face federal charges. US prosecutors revived longstanding allegations against Maduro, including claims of narco-terrorism conspiracy and cocaine trafficking, which he has denied.
In the wake of Maduro’s detention, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed office as Acting President, citing the need to preserve institutional stability. The political shift has renewed scrutiny of Venezuela’s fragile economy and its oil-dependent energy sector, particularly as Trump declared that the United States would oversee the management of the oil-rich country.
By Wednesday evening, Brent crude was trading at $59.99 per barrel, while US benchmark West Texas Intermediate (WTI) fell to $56.10. Analysts warned that prices could slide further if additional Venezuelan crude continues to flow into the US market.
