Oil Slips as Venezuela Redirects Crude from China Under U.S.-Brokered Deal

Oil benchmarks slipped on Wednesday after the U.S. administration said it had convinced Venezuela to reroute crude exports away from China and instead take up to $2 billion in previously embargoed oil, drawing sharp criticism from Beijing over what it called U.S. bullying. The move, which aligns with Washington’s ongoing efforts to influence oil flows from the South American OPEC producer, added to downward pressure on global prices as traders reassessed supply risks and the geopolitical balance between the U.S., Venezuela, and China. Both Oil – Brent Crude and Oil – US Crude weakened as the market interpreted the redirected barrels as a near-term boost to available supply, despite continued uncertainty over Venezuela’s longer-term production capacity and sanctions framework.

Over the past month, Oil – US Crude has fallen about 4.15%, reflecting a combination of softer demand expectations, elevated inventory concerns, and now the prospect of additional Venezuelan barrels entering alternative markets; its 1-day technical outlook currently flashes a Strong Sell, signaling persistent short-term downside momentum. Oil – Brent Crude has declined roughly 3.83% over the same period, underperforming earlier geopolitical risk premiums as supply anxieties ease at the margin; its 1-day technical reading is also a Strong Sell, suggesting bearish sentiment remains entrenched for the global benchmark despite ongoing political frictions among key producer and consumer nations. Investors can explore more updates, prices, and analysis across global markets at Commodities.