Following US President Donald Trump’s announcement that Venezuela will provide the US with millions of barrels of oil, crude oil prices dropped more than 1% on Wednesday morning.
Crude Oil Prices Slide After Venezuela Oil Announcement
Wednesday at 9.56 a.m., February WTI (West Texas Intermediate) crude oil futures were at $56.26, down 1.52 percent, while March Brent oil futures were at $60.02, down 1.12 percent. During the first hour of trading on Wednesday, January crude oil futures were trading at ₹5076 on the Multi Commodity Exchange (MCX), down 2.57 percent from the previous close of ₹5210, while February futures were trading at ₹5100, down 2.28 percent from the previous close of ₹5219.
Global and Domestic Oil Market Reaction
“I am thrilled to report that the Interim Authorities in Venezuela will be handing over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil to the United States of America,” Trump said in a post on the social media site Truth Social. As President of the United States of America, I will manage the money from the sale of this oil at its market price and make sure it is used for the benefit of both the American and Venezuelan people! I have instructed Chris Wright, the Energy Secretary, to carry out this plan right now. Storage ships will transport it straight to American unloading ports.
Less than 1% of the world’s current oil production comes from Venezuela, which has the greatest known oil reserves in the world. According to market sources, output is now less than one million barrels per day.
Venezuela Oil Supply and Production Constraints
🛢️ Venezuela Oil Supply to the US
- Announcement: Donald Trump via Truth Social
- Oil Volume: 30–50 million barrels
- Oil Quality: High quality, sanctioned oil
- Logistics: Storage ships to US unloading ports
- Market Impact: Crude oil prices fell over 1%
- Global Context: Venezuela produces less than 1% of world oil
Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, stated in their recent Commodities Feed that the Venezuelan energy sector requires a large investment, which foreign companies might be hesitant to make unless there is a more alluring investment environment or some sort of guarantee for investors.
Expert Views on Venezuelan Energy Sector
In the meanwhile, US crude oil stocks decreased for the week ending January 2, according to figures issued by the industry association, the American Petroleum Institute (API). API reports that for the week ending January 2, crude oil stockpiles decreased by 2.77 million barrels.
Later on Wednesday, the US EIA (Energy Information Administration) will release official figures. The US crude oil inventory levels for the week ending January 2 will be clearly visible thanks to EIA statistics.
US Crude Oil Inventory Data in Focus
📊 US Crude Oil Stocks Update
- Reporting Body: American Petroleum Institute (API)
- Week Ending: January 2
- Inventory Change: Down 2.77 million barrels
- Next Trigger: EIA official crude oil data release
- Market Watch: Traders tracking oil supply-demand balance
- Price Sensitivity: Inventory data impacts WTI and Brent prices
In the first hour of trading on Wednesday, January nickel futures were trading at ₹1893 on MCX, up 6.50 percent from the previous close of ₹1777.50.
Nickel Futures Performance
In the first hour of trading on Wednesday, April turmeric (farmer polished) futures on the National Commodities and Derivatives Exchange (NCDEX) traded at ₹18482, up 0.75 percent from the previous close of ₹18344.
Turmeric Futures Edge Higher
In the first hour of trading on Wednesday, January guargum futures were down 1.80 percent from the previous close of ₹10845 to ₹10650 on the NCDEX.
