ALBAWABA - Oil prices reported a slight decrease on Wednesday after U.S. President Donald Trump announced that the U.S. had reached an agreement to import $2 billion worth of crude oil from Venezuela, a move expected to boost supplies to the world's largest oil consumer.
Trump said on Tuesday night that Venezuela will be sending between 30 million to 50 million barrels of oil to Washington, to be sold at market value and with the proceeds controlled by the US.
Brent crude futures fell 81 cents, or 1.3%, to $59.89 a barrel, while U.S. West Texas Intermediate crude futures dropped $1, or 1.7%, to $56.13 a barrel.
Oil prices decrease. (Shutterstock)
Both benchmarks had fallen by more than a dollar in the previous trading session, amid market expectations of a global supply glut this year.
Analysts say the agreement will keep prices low amid a market glut. According to Yang An, an analyst at Haitong Futures, "Venezuelan oil exports to the US primarily disrupt the US market, which will exacerbate the global supply glut."
