Oil prices fell at settlement on Tuesday for the second consecutive session after U.S. President Donald Trump said the United States had reached an agreement to import USD 2 billion worth of crude oil from Venezuela, a move that could increase supplies to the world’s largest oil consumer.
Brent crude futures declined by 74 cents, or 1.2%, to settle at USD 59.96 per barrel, while U.S. West Texas Intermediate (WTI) crude fell by USD 1.14, or 2%, to USD 55.99 per barrel.
Both benchmark crudes had already dropped by more than USD 1 in the previous trading session, amid market expectations of a global supply glut this year.
In a social media post on Monday, Trump wrote that Venezuela would “deliver” between 30 million and 50 million barrels of “sanctioned oil” to the United States.
Sources told Reuters that the deal may initially require redirecting shipments that were originally bound for China.
Dennis Kissler, senior vice president of trading at BOK Financial, said: “Crude futures remain on the defensive after late selling yesterday on news that Venezuela would provide the United States with between 30 and 50 million barrels of oil.”
