Global oil markets experienced a significant downturn on Wednesday morning following a stunning announcement by U.S. President Donald Trump regarding the future of Venezuela’s energy sector. In a move that effectively redirects massive energy flows from the Global South to North America, Trump declared that Venezuela would immediately “deliver” between 30 to 50 million barrels of sanctioned crude oil to the United States. The statement sent immediate shockwaves through trading floors, driving U.S. West Texas Intermediate (WTI) crude down by 1.37 percent to $56.35 a barrel, while Brent crude futures slipped 1 percent to trade at $60.09.
In a social media post that has since defined the economic narrative of the intervention, President Trump asserted direct executive oversight over the revenue generated by these seized shipments. “This oil will be sold at its price on the market, and I will control this money, as president of the United States, to ensure that it is used for the benefit of the people of Venezuela and the United States,” he wrote. This declaration signals a profound shift in U.S. policy, moving beyond political regime change to the direct administration of a sovereign nation’s primary economic engine.
Intelligence sources cited by Reuters indicate that the logistical implementation of this directive involves a major geopolitical pivot: the reallocation of oil shipments that were originally contractually bound for China. By intercepting these supplies, Washington is effectively cutting off a critical energy lifeline to Beijing while simultaneously flooding the U.S. market with heavy crude. Venezuela has historically sold its main crude varieties at a steep discount—approximately $22 per barrel less than Brent—placing the estimated value of this initial “delivery” at roughly $1.9 billion.
Market analysts have interpreted Trump’s directive as a clear signal that the U.S. administration intends to prioritize lower consumer prices over market stability. Tina Teng, a market analyst at Momo A.N., noted that Trump’s direct involvement suggests a preference for increasing global supply rather than restricting it. This has reinforced existing fears of a massive oversupply in the market for 2026. Morgan Stanley analysts have already projected a potential surplus of up to three million barrels per day in the first half of the year, driven by weak global demand growth and robust output from both OPEC and non-OPEC producers.
While the American Petroleum Institute (API) reported a draw in U.S. crude inventories of 2.77 million barrels last week—contradicting analyst expectations of a build—the market ignored this tighter short-term data. Instead, traders are fixated on the long-term implications of the U.S. taking control of the world’s largest proven oil reserves. With the “Maduro risk” removed and the U.S. pledging to manage production, the specter of a supply glut has driven prices down, even as the political situation in Caracas remains volatile.
Footage Charlie Kirk has been shot
Charlie Kirk has been shot
