By Peter Omopo
US President Donald Trump has announced that between 30 and 50 million barrels of Venezuelan oil will be transferred to the United States and sold at market price, with proceeds to be managed by Washington, a move that weighed further on global oil prices on Wednesday.
Trump made the disclosure in a post on his Truth Social platform, saying the oil would be handed over by what he described as Venezuela’s interim authorities following the removal of President Nicolás Maduro from power.
“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,” Trump wrote. “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.”
Crude oil prices extended losses after the announcement, with both major benchmarks falling by more than one percent on Wednesday, following declines of between 1.7 and 2.0 percent a day earlier. The oil market has been volatile since Trump ordered the ouster of Maduro at the weekend and declared that the United States would oversee Venezuela’s administration while demanding full access to its oil resources.
Analysts said the planned shipments could ease pressure on Venezuela’s limited storage capacity, reducing the likelihood of forced production cuts and helping to calm immediate supply concerns. However, they added that the broader outlook for oil prices remains bearish, particularly as OPEC+ has already agreed to increase output, leaving global markets well supplied.
Venezuela holds nearly one-fifth of the world’s proven oil reserves, but analysts cautioned that any rapid increase in production would be constrained by aging infrastructure, low global prices and lingering political uncertainty.
Meanwhile, equity markets were mixed after a strong start to the year that has seen several major indices hit record highs, driven largely by sustained investor enthusiasm for artificial intelligence-related stocks.
South Korea’s Kospi index continued to climb on Wednesday, while markets in Shanghai, Sydney, Wellington, Manila and Jakarta also closed higher. In contrast, Hong Kong fell by more than one percent, with losses also recorded in Singapore, Taipei and Mumbai. Tokyo’s Nikkei 225 dropped over one percent after China imposed stricter export controls on goods sent to Japan that could have military applications.
Despite heightened geopolitical tensions, analysts remain optimistic about the outlook for global equities. Michael Brown of Pepperstone said markets continue to be supported by expectations of resilient economic growth and strong corporate earnings.
“Participants remained squarely focused on what remains a robust bull case of resilient economic growth and robust earnings growth,” Brown said, adding that expectations of looser monetary and fiscal conditions over the next year were also supporting sentiment.
As of around 0715 GMT, West Texas Intermediate crude was down 1.6 percent at $56.24 per barrel, while Brent crude fell 1.2 percent to $60.00 per barrel. Major stock indices were mixed across Asia, while Wall Street and London closed higher in the previous session.
