Following US President Donald Trump's announcement that Venezuela would transfer up to 50 million barrels of crude oil to the US, global oil prices dropped on Wednesday due to expectations of increased supply.

The United States and Venezuela came to a deal wherein the South American nation's authorities would sell crude oil worth roughly $2 billion to the US market, according to oilprice.com.

Following Trump's announcement that "interim authorities" in Venezuela would provide between 30 million and 50 million barrels of "high quality" oil to the United States at market price—a figure estimated to be worth over $2 billion—Brent crude fell below $60 per barrel on Wednesday night.

Reuters reported that the agreement with the US-compliant leadership in Venezuela would increase supplies of heavy crude to refineries along the US Gulf Coast and could further reduce illicit shipments of discounted Venezuelan oil to China.

Venezuela’s state-owned oil company, PDVSA, has reportedly been unable to ship oil cargoes to Asia for almost a week, as the United States continues what has been described as an “oil quarantine” on Venezuela. Shipping data reviewed by Reuters on Tuesday confirmed the disruption.

Chevron, which exports Venezuelan crude straight to the US Gulf Coast, is still the only Western oil corporation permitted by the US Treasury to conduct business in Venezuela. However, shipments to Asia have stopped, and China—Venezuela's biggest oil consumer—has been getting less petroleum.

Additionally, according to Bloomberg, Chinese oil buyers have reduced their purchases of Venezuelan crude as the price difference between Brent and the country's flagship Merey blend has shrunk from $15 per barrel last month to $13 per barrel.

The rise in Venezuelan oil prices follows the US naval blockade, which has disrupted tanker movements to and from Venezuela. The blockade is not expected to be lifted soon, as earlier stated this week by US Secretary of State Marco Rubio.

The United States is now seeking access to Venezuelan crude, with Trump claiming on Tuesday that Venezuela would be “turning over” between 30 million and 50 million barrels of oil to the US.

President Trump has also insisted that Venezuela’s interim leader, Delcy Rodríguez, grant the US government and private companies “total access” to the country’s oil industry. The crude exports to the US are expected to come from floating storage facilities that have accumulated since the US imposed a naval blockade off Venezuela’s coast in mid-December.

Venezuela entered 2026 amid growing uncertainty following the capture of President Nicolás Maduro by United States forces and his transfer to the US, alongside his wife, Cilia Flores, to face federal charges.

Maduro was later arraigned before a US court, where prosecutors revived longstanding allegations, including narco-terrorism conspiracy and cocaine trafficking. He has denied all the charges.

Citing the necessity to maintain institutional continuity, Venezuela's Supreme Court declared that Vice President Delcy Rodríguez had taken over as Acting President following his imprisonment. Even though Trump said that the United States would govern the oil-rich country, the current political climate has brought attention back to the future of Venezuela's economy and its oil-dependent energy sector.

West Texas Intermediate dropped to $56.10 by Wednesday night, while Brent crude was selling at $59.99 a barrel. As additional Venezuelan oil enters the US market, analysts predict that prices may drop even lower.