The West Texas Intermediate was around $56 a barrel after it declined 4% over the previous two sessions. Meanwhile, Brent settled below $60.
US Energy Secretary Chris Wright said the US will initially start offering stored crude and then sell Venezuelan supply. The energy department said oil was already being marketed.
Venezuela’s state oil company said that it’s in negotiations with Washington over crude sales through a framework similar to an arrangement with Chevron Corp., the only US major operating the in the country.
President Donald Trump is pushing for US companies to rebuild Venezuela’s energy industry, which is in poor shape after years of neglect, and is due to meet energy executives on Friday. The administration has started selectively rolling back sanctions on the country’s oil sector as part of that effort.
Citgo Petroleum Corp., the US refiner indirectly owned by Venezuela is considering resuming purchases for the first time since sanctions cut off its supply in 2019, while Trafigura Group has expressed interest. Chevron is also in talks with the US to extend its license to operate in the country.
On Tuesday, Trump said Venezuela would relinquish as much as 50 million barrels to the US, worth more than $2 billion, and announced cargoes would be sold with proceeds to benefit both countries. Revenue from sales will be held in US Treasury accounts, according to a person familiar with the matter.
With inputs from Bloomberg
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