Global oil prices extended losses on Wednesday after U.S. President Donald Trump announced that Venezuela would hand over between 30 and 50 million barrels of oil to the United States.
Crude prices, already volatile following Washington’s move to remove Venezuelan President Nicolás Maduro and assume control of the country, fell by more than one percent after Trump’s comments, adding to losses recorded a day earlier.
In a post on his Truth Social platform, Trump said the interim authorities in Venezuela would transfer “between 30 and 50 million barrels of high-quality, sanctioned oil” to the United States. He added that the oil would be sold at market prices, with proceeds managed by the U.S. government to benefit both Venezuela and the United States.
Analysts said the planned shipments could ease concerns about Venezuela’s limited storage capacity and reduce the likelihood of production cuts, helping to calm supply fears. However, they noted that oil prices could remain under pressure, especially as OPEC+ has agreed to increase output.
Although Venezuela holds around one-fifth of the world’s proven oil reserves, experts cautioned that boosting production quickly would be difficult due to ageing infrastructure, low prices and ongoing political uncertainty.
Meanwhile, global equity markets were mixed after a strong start to the year driven largely by enthusiasm around artificial intelligence. Asian markets showed varied performance, while analysts remained broadly optimistic about equities, citing resilient economic growth, strong earnings expectations and looser monetary and fiscal conditions in the months ahead.