Oil markets weakened sharply on Wednesday after US President Donald Trump announced that Washington had struck a deal with Venezuela to bring roughly $2 billion worth of Venezuelan crude into the United States — a move expected to boost supplies to the world’s largest oil consumer. Business Recorder
Brent crude futures fell by over 1%, dipping below $60 a barrel, while US West Texas Intermediate (WTI) crude slipped nearly 1.7%, extending losses from the previous session as traders braced for ample global supply this year. Business Recorder
Under the arrangement, Venezuelan cargoes originally scheduled for China could be rerouted to US shores, increasing the volume of crude available in the market and easing supply pressure. Venezuela is also seeking to move millions of barrels currently stuck in storage and on tankers, a sign of the country’s urgent need to liquidate stockpiles amid strained relations with the US. Business Recorder
Analysts warned that rerouted Venezuelan volumes would add to an already oversupplied market, keeping downward pressure on prices. According to market forecasters, global crude could see a surplus of up to 3 million barrels per day through the first half of 2026 as demand growth falters and production from OPEC and non‑OPEC producers rises. Business Recorder
While some economists note that the influx of cheap Venezuelan barrels might slow investment in expanding production capacity in the US and other major producers, others see the deal as a reinforcement of bearish sentiment in oil markets already grappling with weak demand and swelling inventories. Business Recorder
Venezuela’s flagship crude grade, Merey, has been selling at significant discounts — about $22 per barrel below Brent — highlighting the competitive pressure that additional Venezuelan exports could exert on global benchmarks.
