Venezuela oil revival may add to global oversupply

US President Donald Trump said interim Venezuelan authorities will turn over between 30 and 50 million barrels of oil to the United States; the announcement coincided with a 2.4% drop in the US oil benchmark, West Texas Intermediate.

US President Donald Trump announced that interim Venezuelan authorities will provide between 30 and 50 million barrels of oil to the United States, and said proceeds would be used to benefit both countries. This reported volume would equal roughly 30 to 50 days of Venezuelan production before the US partial blockade. China remains the largest market for Venezuelan crude, while the United States is a more distant buyer, driven largely by Chevron. Markets registered a reaction after the announcement. Key points: - The president reported that interim Venezuelan authorities will turn over between 30 and 50 million barrels of oil to the United States. - That volume was described as roughly equivalent to 30–50 days of Venezuelan production before the US partial blockade. - China is identified as the largest market for Venezuelan oil, with the United States a distant second, largely via Chevron. - The US oil benchmark, West Texas Intermediate, fell about 2.4% following the announcement. Summary: The announcement coincided with a measurable market reaction and raises the prospect of more Venezuelan crude entering trade channels. How much oil will actually move and the detailed handling of proceeds were reported by the president, and next procedural steps are undetermined at this time.