07.01.202600:40:55UTC+00Oil Falls on Venezuela’s Crude Transfer to US

WTI crude oil futures experienced a decline of over 1%, approaching $56 per barrel, as losses extended from the previous trading session. This movement followed President Donald Trump's announcement that Venezuela is set to transfer between 30 and 50 million barrels of crude oil to the United States. Although this volume is relatively modest, market participants are concerned that consistent inflows of Venezuelan oil into the US market could exacerbate the current oversupply. Additionally, traders are evaluating the potential repercussions on future oil exports and the energy industry, as companies like Trafigura initiate discussions with US officials about resuming Venezuelan crude purchases. In parallel, progress on a US-Ukraine security agreement has increased the likelihood of reduced restrictions on Russian crude exports. Furthermore, API data indicated a decline in US crude oil inventories by 2.8 million barrels last week, countering market predictions of a 1.2 million-barrel increase.