Oil Markets Reel as Trump Says US to Sell 30–50 Million Barrels of Venezuelan Crude

Global oil prices extended their downward slide on Wednesday after United States President Donald Trump announced that between 30 million and 50 million barrels of Venezuelan crude oil would be turned over to the United States and sold for the benefit of both Countries, a move that eased supply concerns and pressured energy markets.

The announcement came amid heightened volatility in the oil market following Washington’s intervention in Venezuela and the removal of President Nicolás Maduro over the weekend.

Since then, crude prices have experienced sharp swings as investors assessed the geopolitical and supply implications of US involvement in one of the world’s most oil-rich Nations.

In a post on his Truth Social Platform, Trump said Venezuela’s interim authorities would hand over the oil to the United States.

“The Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America,” he wrote.

Trump said the crude would be sold at prevailing market prices, with the proceeds controlled by the US administration.

“This oil will be sold at its market price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States,” he added.

Global Mirror News gathered that following the statement, both major oil benchmarks fell by more than one per cent on Wednesday, deepening losses of between 1.7 and 2.0 per cent recorded in the previous session.

Analysts said the planned shipment of Venezuelan crude reduced the likelihood that Caracas would be forced to cut production due to storage constraints, thereby easing near-term supply risks.

The decline in prices also reflects broader market conditions, with crude supplies remaining ample after the OPEC+ alliance agreed to increase output.

Market watchers noted that this combination of higher supply and softer demand expectations has tilted the outlook for oil prices to the downside.

Venezuela holds roughly a fifth of the World’s proven oil reserves, but analysts cautioned that a rapid increase in output would be difficult. Years of underinvestment, ageing infrastructure, low oil prices and political uncertainty continue to limit the country’s production capacity despite its vast resource base.

Equity markets were mixed as investors weighed the oil market developments against strong momentum in global stocks at the start of the year.

Several major indices have already hit record highs in 2026, driven largely by sustained investment in artificial intelligence and technology-related sectors.

In Asia, South Korea’s Kospi index extended its gains, while stock markets in Shanghai, Sydney, Wellington, Manila and Jakarta also closed higher.

By contrast, Hong Kong’s Hang Seng Index fell by more than one per cent, with losses also recorded in Singapore, Taipei and Mumbai. Japan’s Nikkei 225 dropped over one per cent after China announced tighter export controls on goods shipped to Japan that could have potential Military applications. Bangkok ended trading flat.

Despite rising geopolitical tensions, analysts remain broadly optimistic about the outlook for equities.

Michael Brown of Pepperstone said investors continue to focus on resilient economic growth and strong earnings prospects, supported by expectations of looser monetary and fiscal conditions over the coming months.

At around 0715 GMT, West Texas Intermediate crude was down 1.6 per cent at $56.24 per barrel, while Brent North Sea crude fell 1.2 per cent to $60.00 per barrel.

In currency markets, the euro and pound edged higher against the US dollar, while the yen strengthened slightly.

Market participants are expected to continue monitoring developments in Venezuela and their implications for global energy supplies and broader financial markets in the days ahead.