Global Oil Market Reacts to Trump's Venezuela Oil Initiative

Sharp Price Decline

Oil prices experienced a significant drop following US President Donald Trump's announcement about importing Venezuelan oil. As of 07:21 WIB on January 7, 2026, West Texas Intermediate (WTI) for February 2026 delivery fell 1.31% to $56.38 per barrel ¹

Market Dynamics

The price decline was triggered by Trump's statement that Venezuela would supply between 30-50 million barrels of sanctioned oil to the US, to be sold at market prices. This development was seen as a potential increase in global oil supply, pressuring prices downward. Brent crude also fell by 1.2% to $59.96 per barrel, while WTI dropped 2% to $55.99 per barrel on the same day ²

Geopolitical Implications

The deal has significant geopolitical ramifications. China, which imported about 389,000 barrels per day from Venezuela in 2025, criticized the US move as 'bullying'. Chinese Foreign Ministry spokesperson Mao Ning condemned the action as a serious violation of international law and Venezuela's sovereignty ⁴

Market and Political Reactions

The announcement has created mixed reactions globally. While oil-importing nations might benefit from increased supply, the political maneuver has raised concerns about international law and sovereignty. Venezuela's interim government, led by Delcy Rodriguez, faces a delicate situation, balancing condemnation of Maduro's ousting while engaging with the US ⁴