Global oil markets have recorded a decline in crude prices after the announcement of a new agreement between the United States and Venezuela, which could allow large volumes of Venezuelan oil to be sold to U.S. refineries. The move is part of Washington’s broader strategy to reshape international energy flows in its favor and reduce the influence of other major importers, particularly China, one of the main buyers of Venezuelan crude.
Up to 50 million barrels headed to the U.S.
Under the agreement, Venezuela could export between 30 and 50 millions barrel of oil, previously blocked by U.S. sanctions, with an estimated value of around $2 billion. The deal is intended to revive Venezuela’s struggling oil industry while supplying U.S. refineries with much-needed crude, marking a significant shift in energy relations between Washington and Caracas.
Immediate impact on oil prices
The announcement had an immediate effect on global oil prices. Markets reacted by pushing prices lower as expectations of increased supply eased concerns over tight availability. Both Brent and WTI crude fell, reversing part of the recent upward momentum driven by geopolitical risks in the Middle East and other supply-related uncertainties.
China’s strong reaction
Trump’s plan has triggered strong opposition from China, which criticized the U.S. move as an act of “bullying.” Beijing reiterated that Venezuela retains sovereignty over its natural resources and stressed that Chinese interests in the country—including long-term investments and energy contracts—should be protected under international law. Chinese officials also condemned what they described as the excessive use of coercive measures in international relations.