Following Donald Trump’s announcement that Venezuela will provide the United States with millions of barrels of oil, oil continued to decline on Wednesday, while stocks were mixed following a record-breaking start to the year.
Since the US president ordered the overthrow of his counterpart in Caracas, Nicolas Maduro, on Saturday and declared that Washington will govern the nation while demanding “total access” to its vital resource, Crude has experienced violent fluctuations.
However, following Trump’s announcement of the most recent development, both major contracts fell more than one percent on Wednesday after losing 1.7–2.0 percent on Tuesday.
“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 on his Truth Social platform.
“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.”
The shipments, according to analysts, reduced the possibility that Caracas would have to reduce output due to its limited storage capacity, relieving supply concerns. However, they also stated that lower prices were anticipated for the commodity.
As a result of OPEC+’s agreement to increase output, the crude market is still well-stocked.
