Oil prices were lower on Wednesday as traders reacted to expectations that crude supplies from Venezuela were set to increase.
President Donald Trump said the U.S. had reached a deal ?to import $2 billion worth of ?Venezuelan crude, a ?move that is expected to increase supplies to the world’s largest oil consumer. Also people close to the White House told the media that oil sales from the South American country would continue indefinitely and sanctions would be reduced.
Brent crude futures fell two cents to $60.68 U.S. a barrel, while ?U.S. ?West Texas Intermediate crude slipped 20 cents to $56.93 a barrel.
Venezuela could be seeking to unload millions of barrels of oil that are stranded in tankers and storage facilities to avoid additional escalation with the United States.
Trump had demanded that Venezuela open up to U.S. oil companies or risk escalating military intervention. After that, U.S. forces captured Venezuelan President Nicolas Maduro at the weekend.
Analysts say the agreement would keep prices low in an oversupplied market.
Morgan Stanley analysts estimated the oil market could reach a ?surplus of as many as three million barrels per day in ?the first half of 2026, based on weak growth in ?demand last year and rising supply from OPEC and non-OPEC producers.
