US-Venezuela oil deal draws China criticism and pushes prices down

China criticized a U.S. announcement that Venezuelan oil shipments bound for China could be rerouted after Washington said it would import up to $2 billion of embargoed crude, and global oil prices fell about 1%.

U.S. officials announced they had persuaded Venezuela to divert oil cargoes that had been headed for China and said Washington would import up to $2 billion of embargoed crude. President Trump said the U.S. would refine and sell up to 50 million barrels and that proceeds would be controlled by him. Venezuela has not confirmed the arrangement, and China publicly criticized the U.S. action. Key points: - U.S. officials reported a deal to reroute Venezuelan shipments and import up to $2 billion of embargoed crude. - President Trump said the U.S. would refine and sell up to 50 million barrels and that the proceeds would be under U.S. control. - Global crude prices fell about 1% on expectations of increased supply, and China denounced the U.S. action as a violation of Venezuela's sovereignty; Venezuela has not confirmed the deal. Summary: The announcement combined diplomatic criticism and a modest drop in oil prices, reflecting concerns about increased supply and sovereignty disputes. Undetermined at this time.