Oil prices continued to fall on Wednesday morning, on fears of a supply increase after US President Donald Trump said Venezuela will send up to 50 million barrels to the United States.
In a post on his Truth Social platform on Tuesday, Mr Trump said Venezuela’s interim government would hand over between 30 million and 50 million barrels of “sanctioned oil” to the US, in a move he framed as benefiting both nations. A barrel contains 159 litres.
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The amount is the equivalent of one to two months of Venezuelan oil production.
The oil would be sold at market prices, and proceeds would be controlled by him as president to ensure they were used “to benefit the people of Venezuela and the United States,” Mr Trump posted.
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A barrel of North Sea Brent for delivery in March fell on Wednesday morning by 56 cents, or nearly 1 per cent, to 60.14 dollars, after the price fell by nearly 2 per cent on Tuesday.
READ ALSO: China slams Trump’s plan to control Venezuela’s oil
The price for a barrel of US grade WTI for delivery in February fell by 73 cents, or 1.3 per cent, to $56.40.
It was initially unclear over what period the volume of crude oil cited by Mr Trump would be made available by Venezuela.
Oil is Venezuela’s most important source of revenue and foreign currency.
The new leadership in Caracas did not immediately comment on Mr Trump’s announcement.
(dpa/NAN)
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