Oil Prices Plunge as Trump Announces Venezuela Oil Deal, Sparks Oversupply Fears

• Oil prices, including WTI and Brent crude, fell after President Trump stated Venezuela would send 30-50 million barrels of sanctioned oil to the US.
• Trump's social media post indicated he would control the sale proceeds to benefit both Venezuela and the United States.
• The announcement fueled concerns about global oversupply, with analysts like Tina Teng noting Trump's preference for increased supply.
• The deal could reallocate cargoes originally bound for China, with Venezuela's Merey crude selling at a significant discount.
• Chevron is currently the sole company exporting Venezuelan oil to the US, with analysts predicting further disruption to the US market and global oversupply.

Why It Matters: Trump's Venezuela oil deal announcement triggers oil price drop amid global oversupply concerns.