Oil fell more on Wednesday after Donald Trump indicated Venezuela would hand over millions of barrels to the United States, while stocks remained mixed following a record-breaking start to the year.Crude has seen huge swings since the US Trump advocated the overthrow of Nicolas Maduro, his Caracas counterpart, on Saturday, claiming Washington would rule the country while demanding "total access" to its primary resource.
However, when Trump announced the latest development, both primary futures fell more than one percent on Wednesday, after losing 1.7-2.0 percent the day before.
"The Interim Authorities in Venezuela will turn over between 30 and 50 million barrels of high-quality, sanctioned oil to the United States of America," he stated on his Truth Social platform.
"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."
Analysts said the cargoes reduced the chance that Caracas would be forced to reduce output due to limited storage capacity, alleviating supply concerns, but added that the commodity's outlook was for lower prices.
This comes as the crude market remained well supplied after OPEC+ decided to increase supply.
Analysts said the cargoes reduced the chance that Caracas would be forced to reduce output due to limited storage capacity, alleviating supply concerns, but added that the commodity's outlook was for lower prices.
This comes as the crude market remained well supplied after OPEC+ decided to increase supply.
Venezuela has almost one-fifth of the world's oil reserves, but observers warned that a rapid increase in output would be hampered by a number of factors, including creaking infrastructure, low pricing, and political uncertainty.
Equity markets fluctuated following a robust start to the year that saw Seoul join London and New York in setting record highs, owing to the unrelenting rush into all things artificial intelligence.
South Korea's Kospi index continued to rise on Wednesday, while Shanghai, Sydney, Wellington, Manila, and Jakarta all climbed.
Equity markets fluctuated following a robust start to the year that saw Seoul join London and New York in setting record highs, owing to the unrelenting rush into all things artificial intelligence.
South Korea's Kospi index continued to rise on Wednesday, while Shanghai, Sydney, Wellington, Manila, and Jakarta all climbed.
However, Hong Kong fell by more than 1%, as did Singapore, Taipei, and Mumbai. Tokyo fell more than 1% as China tightened export regulations on equipment delivered to Japan with potential military use.
Bangkok was flat.
Despite escalating geopolitical tensions, economists remain optimistic about the outlook for equities this year.
"Participants remained squarely focused on what remains a robust bull case of resilient economic growth and robust earnings growth, largely in keeping with that which powered the market higher last year," according to Pepperstone analyst Michael Brown.
Bangkok was flat.
Despite escalating geopolitical tensions, economists remain optimistic about the outlook for equities this year.
"Participants remained squarely focused on what remains a robust bull case of resilient economic growth and robust earnings growth, largely in keeping with that which powered the market higher last year," according to Pepperstone analyst Michael Brown.
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