US-Venezuela oil deal angers China and pushes prices down

The U.S. said it had convinced Venezuela to reroute oil supplies bound for China and to import up to $2 billion of embargoed crude, a move China called bullying; Venezuela has not confirmed the deal and global crude prices fell about 1%.

The United States announced it had persuaded Venezuela to divert oil supplies originally bound for China and to take in up to $2 billion of embargoed crude. China publicly criticised the action, calling it a violation of Venezuela's sovereignty. Global crude prices fell roughly 1% on expectations of increased supply. Venezuela has not confirmed the arrangement, and the situation remains contested. What is known: - U.S. officials said Venezuela would reroute cargoes and import up to $2 billion of embargoed crude. - Venezuela has not confirmed the reported deal. - China’s foreign ministry described the U.S. action as bullying and said it violated Venezuela’s sovereignty. - Global oil prices fell around 1% on markets anticipating increased supplies. - Former Venezuelan leader Nicolás Maduro pleaded not guilty to narcotics charges in a Manhattan court, a reported legal development linked to the broader situation. Summary: The announcement coincided with a modest drop in global oil prices and sharpened diplomatic tensions between the United States and China. Undetermined at this time.