Oil prices edged lower on Wednesday as investors weighed uncertainty over Venezuela's oil output following the seizure of President Nicolas Maduro, while expectations of ample global supply continued to cap prices.
International benchmark Brent crude stood at $59.98 per barrel at 9.28 a.m. local time (0628 GMT), down 0.6% from the previous close of $60.36.
US benchmark West Texas Intermediate (WTI) fell 0.9% to $56.26 per barrel, compared with $56.78 in the prior session.
US President Donald Trump said Tuesday that interim authorities in Venezuela had agreed to transfer between 30 and 50 million barrels of sanctioned oil to the US to be sold at market price.
"I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America," Trump said in a statement via his social media company Truth Social.
"This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!" he added.
Experts say Trump's remarks suggest a preference for boosting supply rather than tightening it, adding to existing concerns about oversupply in global oil markets.
On Tuesday, Fitch Ratings reported that the US actions in Venezuela have had a limited impact on North American oil producers.
"Recent U.S. involvement in Venezuela could ultimately support oil production growth in the country and benefit U.S. exploration and production (E&P) companies should they result in policy shifts that enable increased foreign participation in the sector," the international credit rating agency said in a statement.
However, meaningful gains would likely require major investment and time, and investment incentives remain limited in a currently oversupplied global market, it said.
Meanwhile, the American Petroleum Institute said US commercial crude inventories fell by 2.8 million barrels last week, defying market expectations for a 1.2 million-barrel build. The unexpected drawdown signaled resilient US demand and helped limit further price declines.
Official inventory data from the US Energy Information Administration are due later Wednesday.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
