Oil Slides as Trump Announces Venezuela Will Hand Over Millions of Barrels, Markets React

Oil prices fell sharply this week after U.S. President Donald Trump announced that Venezuela would hand over millions of barrels of oil to the United States. The news sent global markets into a mix of caution and uncertainty. Crude markets have been volatile since Trump’s recent actions in Caracas.

Trump posted on Truth Social that Venezuela will “turn over between 30 and 50 million barrels of high-quality, sanctioned oil” to the U.S. He said the oil would be sold at market prices. Proceeds would be controlled by his administration to benefit both Venezuela and the United States.

Markets reacted quickly. West Texas Intermediate crude fell about 1.2 percent to $56.47 per barrel. Brent crude dropped around 1 percent to $60.10. Prices had already been sliding as traders assessed the impact of the Venezuelan oil announcement.

Analysts said the additional oil supply would ease concerns over shortages. Caracas would not need to cut output due to storage limits. The move pushed expectations toward lower crude prices in the near term.

However, experts warned that Venezuela may struggle to increase production quickly. Aging infrastructure, low oil prices, and political uncertainty could limit output. Despite this, the news fueled bearish sentiment in an already well-stocked market, following OPEC+ output increases.

Equity markets were mixed. Asian stocks fell in Hong Kong, Tokyo, and Taipei. Other markets, including Seoul, Sydney, and Shanghai, climbed on continued optimism. Investors balanced geopolitical tensions with expectations for steady growth and earnings.

Market watchers remain cautiously positive. They see strong corporate earnings and supportive monetary policies. Analysts say any future market dips could present buying opportunities for long-term investors.

Key figures at 0230 GMT: West Texas Intermediate down 1.2% at $56.47, Brent crude down 1.0% at $60.10. Nikkei 225 down 0.5%, Hang Seng down 1.0%, Shanghai Composite up 0.1%.