Oil prices drop as Trump vows to seize up to 50m barrels of Venezuelan crude

Brent crude dropped below 60 US dollars a barrel after the US leader said Venezuela would turn over oil worth close to £1.5 billion.

Oil prices fell sharply on Wednesday as markets reacted to the prospect of more supply after US President Donald Trump said Venezuela would hand over as much as 30–50 million barrels of crude to the United States. Brent crude briefly dipped below $60 per barrel following the comments, with the potential shipment valued at close to $2 billion (about £1.5 billion).

In a post on Truth Social, Trump said the oil would be taken by storage ships and delivered straight to unloading docks in the US. He added that the money would be controlled by him as president but used to benefit both Venezuelans and the United States.

The development follows a US military operation to capture Venezuela’s ousted leader Nicolas Maduro and fly him to the US to face drug charges. Reports also suggested the White House is planning an Oval Office meeting on Friday with oil industry leaders, with representatives from Exxon, Chevron and ConocoPhillips expected to attend.

Analysts said the move in crude reflected renewed concerns about a supply glut, with global oil supplies forecast to exceed demand in 2026. Kathleen Brooks, research director at XTB, said the latest drop shows oil remains highly sensitive to changes in supply expectations.

The weaker oil price also weighed on energy stocks in London, with BP and Shell down early on Wednesday by around 3% and 2% respectively. Richard Hunter, head of markets at Interactive Investor, said oversupply fears linked to Venezuela created a headwind for the FTSE 100, which fell about 0.5% (around 50 points) to roughly 10,072.5 in morning trade.