Oil drops on Trump’s plan to bring Venezuelan crude to U.S

Oil prices have fallen after U.S President Donald Trump said Venezuela’s interim authorities will turn over between 30 million and 50 million barrels of oil to the United States following the ouster of authoritarian leader Nicolás Maduro.

Brent crude futures went down by $0.7, or 1.15%, to $60 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures decreased by $0.9, or 1.58%, to $56.23 per barrel by [11:56 am] PST.

President Trump in a social media post said the oil, which he described as “high quality” and “sanctioned,” will be sold at market prices, with the proceeds controlled by him as president to benefit both Venezuela and the United States, CNBC reported.

Further he had instructed Energy Secretary Chris Wright to execute the plan immediately, with the oil to be transported by storage ships and delivered directly to unloading docks in the United States.

The announcement came three days after U.S. forces captured Maduro and his wife in Caracas and transported them to New York, where they face federal drug-trafficking conspiracy charges.

The Wall Street Journal reported Tuesday that Trump plans to meet Friday at the White House with representatives from Chevron, ConocoPhillips, Exxon Mobil, and other domestic producers to discuss significant investments in Venezuela’s oil sector.

President Trump has said U.S. oil companies could ultimately invest billions of dollars to rehabilitate Venezuela’s aging oil production infrastructure.

Chevron is currently the only U.S. oil company operating in Venezuela. The assets of ConocoPhillips and Exxon Mobil were nationalized during the mid-2000s under former President Hugo Chávez.