Oil falls after Trump reveals plan for Venezuelan oil

Oil prices fell on Wednesday as US President Donald Trump’s plan to refine and sell Venezuelan crude oil raised concerns about the long-term impact of US actions.

US data on Wednesday showed job openings fell more than expected in November while hiring eased, but investors were keen to see Friday’s US employment report for December.

Investors said it was difficult to translate the implications of Trump’s capture of Venezuelan President Nicolas Maduro over the weekend. The potential for his move on Caracas to unsettle China, as he also ratchets up rhetoric about acquiring Greenland, meant global trade tensions could rise, making market turbulence more likely.

The United States said on Wednesday it has seized a Russian-flagged, Venezuela-linked tanker, as Trump pushes to dictate oil flows in the Americas and force Caracas’ socialist government to become its ally.

Market reaction to Trump’s Venezuela moves has so far played out mostly in commodities.

China, which imported 389,000 barrels per day of Venezuelan oil in 2025, on Wednesday denounced Trump as a bully in response to his claim that he had convinced Caracas to divert crude supplies away from Beijing.

US crude fell US$1.14 to settle at US$55.99 a barrel and Brent fell 74 cents to settle at US$59.96. REUTERS

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