Crude oil prices drop as US makes deal for Venezuelan oil
Oil prices slid over 1% on Wednesday after former President Trump announced the US will start getting oil directly from Venezuela.
Brent and WTI futures both dipped, and Indian oil futures also saw a noticeable drop.
According to Trump, the move is intended to benefit both Venezuela and the United States, but it's already shaking up global prices.
What's behind the deal?
Venezuela, despite having huge oil reserves, is struggling with low production—under 1 million barrels a day—because its industry needs investment.
Under the new deal, Venezuela will send 30-50 million barrels of sanctioned oil straight to US ports.
Meanwhile, US crude inventories have fallen by nearly 2.8 million barrels recently, so this extra supply could make a difference for American markets.