2026-01-14 22:55:00
Summary:
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Trump says he spoke with Venezuela’s interim president on oil, minerals and security
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U.S.–Venezuela partnership framed as stabilisation and recovery effort
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Oil sold off sharply after Trump comments easing Iran execution fears
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Venezuela supply expectations added to bearish oil sentiment
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Markets focused on reduced geopolitical risk premium
President Donald Trump said he held a call with Venezuela’s interim president Delcy Rodríguez, claiming “tremendous progress” in talks aimed at helping Venezuela stabilise and recover. In a post on Truth Social, Trump said discussions covered oil, critical minerals, trade and national security, describing the emerging U.S.–Venezuela partnership as “spectacular” and predicting a prosperous future for the country.
The comments add to a growing flow of U.S. messaging pointing to deeper engagement with Venezuela’s energy sector, following reports earlier this week of Washington exploring mechanisms to channel Venezuelan oil supply back toward global markets under tighter U.S. oversight. Trump framed the dialogue as both an economic and strategic initiative, tying energy cooperation to broader security objectives.
Markets, however, reacted less to the Venezuelan angle than to a separate geopolitical signal that hit oil prices sharply lower during Wednesday’s U.S. session. Crude came under heavy selling after Trump said he had been told the killing in Iran was stopping and that there were no plans for executions, a remark that traders interpreted as reducing immediate geopolitical risk premia embedded in oil prices.
The combination of easing Iran-related tensions and the prospect, however preliminary, of Venezuelan supply becoming less constrained weighed on sentiment, pushing prices sharply lower from recent highs. While no concrete policy actions were announced alongside Trump’s comments, the tone reinforced expectations that the administration may lean on diplomacy and supply-side solutions to dampen energy prices.
For oil markets, the message was clear: headline risk is cutting both ways. Any reduction in Middle East escalation fears, coupled with renewed focus on Venezuelan barrels, increases downside sensitivity in crude, particularly in a market already grappling with ample supply and uneven demand growth.
