Oil Prices Drop as Trump Pursues A $2 Billion Venezuelan Crude Oil Supply Deal.

Oil prices fell on Wednesday as markets anticipated a rise in crude supply following U.S. President Donald Trump’s announcement that Venezuela would deliver up to 50 million barrels of oil to the United States.

Venezuela and the U.S. reportedly reached an agreement for the South American nation to export crude valued at approximately $2 billion to the U.S. market.

Brent crude fell below $60 per barrel by Wednesday evening after Trump stated that “interim authorities” in Venezuela would provide between 30 million and 50 million barrels of high-quality oil at market prices, valued near $2 billion.

The deal is expected to increase heavy crude deliveries to Gulf Coast refineries in the U.S. and may further limit illicit Venezuelan oil shipments to China. Shipping data shows that Venezuela’s state oil company, PDVSA, has been unable to move cargoes to Asia for nearly a week due to ongoing U.S. sanctions.

Chevron remains the only Western company authorised by the U.S. Treasury to operate in Venezuela, shipping crude to the Gulf Coast. Meanwhile, shipments to China, Venezuela’s top oil customer, have slowed, with Chinese buyers reducing imports as the discount on Venezuela’s flagship Merey crude narrowed from $15 per barrel last month to $13 per barrel.

The price increase follows a U.S. naval blockade that has disrupted tanker traffic to and from Venezuela. Trump has indicated that the U.S. would gain access to Venezuelan crude, potentially from floating storage built up since the blockade began in December. He also insisted that interim President Delcy Rodríguez provide full access to the Venezuelan oil industry for the U.S. and private companies.

Venezuela entered 2026 amid uncertainty after U.S. forces captured President Nicolás Maduro and his wife, Cilia Flores, transferring them to the U.S. to face federal charges. Maduro has denied longstanding allegations, including narco-terrorism and cocaine trafficking.

Following Maduro’s detention, Venezuela’s Supreme Court appointed Vice President Delcy Rodríguez as Acting President to maintain institutional continuity, placing renewed focus on the country’s oil-dependent economy.

By Wednesday evening, Brent traded around $59.99 per barrel, while West Texas Intermediate dropped to $56.10. Analysts predict that prices may fall further as additional Venezuelan crude enters the U.S. market.