Oil falls after Trump says Venezuela will supply the U.S.

Oil prices fell after President Donald Trump announced a deal to import up to US$2 billion of Venezuelan crude, and Brent and U.S. WTI benchmarks slid by roughly $0.35 and $0.52 a barrel respectively, according to market reports.

Oil prices declined after U.S. President Donald Trump announced a deal to import up to US$2 billion of Venezuelan crude, a move reported to increase available supply to the United States and global markets. Traders and analysts cited the announcement as a factor in lower benchmark prices. Reports said some cargoes originally bound for China could be rerouted to the U.S. The announcement follows a U.S. export blockade on Venezuelan oil and reporting that U.S. forces captured Venezuelan President Nicolas Maduro over the weekend. Key developments: - Brent crude futures were reported down about $0.35, to US$60.35 a barrel, and U.S. West Texas Intermediate futures down about $0.52, to US$56.61 a barrel by 4:28 a.m. ET. - President Trump said the United States had reached a deal to import up to US$2 billion of Venezuelan crude and wrote that Venezuela would be "turning over" between 30 million and 50 million barrels of sanctioned oil. - Sources told Reuters the deal could initially require rerouting cargoes that had been bound for China. - Morgan Stanley analysts estimated the oil market could reach a surplus of as many as 3 million barrels per day in the first half of 2026 based on recent demand and supply trends. - BMI (a Fitch Solutions unit) analysts noted Venezuela's Merey crude trades at a significant discount to Brent and said higher low-cost Venezuelan exports could affect future capacity expansion in other producing countries. Summary: Oil prices eased as markets weighed the prospect of added Venezuelan supply and shifting cargo flows. Analysts flagged the potential for a near-term supply surplus while also noting possible effects on longer-term production investment. Undetermined at this time.