BY GODWIN OBI
Global oil prices declined on Wednesday amid expectations of a supply increase after United States President Donald Trump disclosed plans for Venezuela to deliver up to 50 million barrels of crude oil to the US.
According to industry sources, Washington and Venezuela’s interim authorities have reached an agreement under which the South American nation would export crude oil valued at about $2 billion to the United States.
Following the announcement, Brent crude slipped below $60 per barrel, with Trump stating that Venezuela would provide between 30 million and 50 million barrels of what he described as “high-quality” oil to the US at prevailing market prices.
The deal is expected to boost supplies of heavy crude to refineries along the US Gulf Coast and may further reduce Venezuela’s unofficial oil exports to China. Analysts note that increased access to Venezuelan crude could weigh further on global oil prices.
Venezuela’s state oil company, PDVSA, has struggled to ship crude to Asia in recent days as the United States continues its maritime blockade of Venezuelan oil exports. Shipping data indicate that tanker movements to Asian markets have stalled, disrupting supplies to China, Venezuela’s largest oil customer.
Currently, Chevron remains the only Western oil company authorised by the US Treasury to operate in Venezuela, exporting crude directly to the US Gulf Coast. Meanwhile, Chinese refiners have scaled back purchases of Venezuelan oil as price discounts narrowed, reducing the attractiveness of the crude.
Market analysts attribute the recent rise in Venezuelan crude prices to the US naval blockade, which has limited tanker traffic and constrained export routes. Despite this, the US administration appears determined to secure direct access to Venezuela’s oil reserves.
Trump reiterated on Tuesday that Venezuela would be “turning over” between 30 and 50 million barrels of crude to the United States. He also insisted that interim authorities in Caracas grant US interests and private companies extensive access to the country’s oil industry.
Sources indicate that the crude earmarked for export could be drawn from floating storage facilities that have accumulated since the US imposed the offshore blockade in mid-December.
Venezuela entered 2026 amid political uncertainty following the detention of former President Nicolás Maduro by US forces. After his transfer to the United States to face federal charges, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed office as Acting President to ensure continuity of government.
The unfolding political and economic developments have intensified global attention on Venezuela’s oil sector, even as Trump suggested that the United States would take a central role in managing the country’s vast energy resources.
As of Wednesday evening, Brent crude traded at $59.99 per barrel, while West Texas Intermediate (WTI) fell to $56.10 per barrel. Analysts warn that prices could slide further if Venezuelan crude flows into the US market accelerate in the coming weeks.
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