By Alexander Miller, consultant in energy markets. Eurasia Business News, January 7, 2026. Article n°1974
Oil futures fell over 1.5% after President Trump said Venezuela’s interim authorities will give the U.S. up to 50 million barrels of sanctioned crude.
What happened
President Trump said Venezuela’s interim authorities will “turn over” between 30 and 50 million barrels of sanctioned, high‑quality crude to the U.S., to be sold at market prices, with proceeds controlled by the U.S. president for use in Venezuela and the United States.
The Venezuelan oil is currently constrained by sanctions, so the announcement signaled that part of this stranded supply could now enter global trade flows via U.S. buyers.
In a post on Truth Social, Trump said he has directed Energy Secretary Chris Wright to have the oil taken by storage ships and transported to the U.S. Plus, the president intends to meet U.S. energy executives on Friday to discuss making significant investments in Venezuela’s oil sector.
Market reaction in oil futures
Futures for WTI crude, the U.S. oil-price benchmark, were down over 1.5% before paring some losses on Wednesday morning. Brent crude contracts, the international benchmark, crept lower.
Analysts noted that even though 30–50 million barrels equal only a few days of U.S. consumption, the signal of potential sanction relief and future investment in Venezuela’s sector contributes to a softer price outlook in an already well‑supplied market.
Why prices only “inched” lower
The announced barrels are a one‑off shipment range, not an immediate, large, sustained production increase, so the impact on long‑dated supply expectations is limited.
Venezuela’s infrastructure remains degraded, and any major, durable ramp‑up in output would take time and investment by U.S. oil companies that Trump plans to court, which tempers the bearish impact on futures curves.
Broader implications traders are watching
Possible easing or restructuring of sanctions on Venezuelan oil, which could allow more barrels to reach the market in coming quarters if political and security conditions stabilize.
How quickly U.S. firms actually commit capital to Venezuelan fields, and whether further U.S. military or political moves in Venezuela create new supply or transit risks that could offset today’s modestly bearish headline.
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© Copyright 2025 – Eurasia Business News. Article no. 1974
Eurasia Business News 