Global oil prices slipped on Wednesday after Trump said Venezuela would transfer between 30 and 50 million barrels of its sanctioned crude to the United States, spooking traders already wary of oversupply.
Brent crude fell more than 1% to just above $60 a barrel, while United States oil dropped to around $56, as markets digested the prospect of up to $3bn worth of extra oil being released from storage tanks and tankers into global trade.
Under Trump's plan, the oil would be shipped directly to the United States, with the president saying he would personally oversee the revenues to ensure they benefit both Americans and Venezuelans. The move follows Washington's dramatic intervention in Venezuela and Trump's pledge to "take back" control of the country's energy wealth.
The announcement also raised tensions with China, which currently buys the bulk of Venezuela's crude. Beijing warned the move violated international law and Venezuelan sovereignty, signalling a potential new front in United States-China energy rivalry.
Analysts caution that while the volumes sound large, the longer-term impact depends on timing and logistics, and whether Venezuela's decaying oil industry can realistically ramp up production after years of sanctions, mismanagement and underinvestment.