WTI crude oil futures fell more than 1% toward $56 per barrel, extending losses from the previous session, after President Donald Trump said Venezuela would turn over between 30 and 50 million barrels of crude to the US. While the amount remains relatively small, markets fear that if Venezuelan oil flows into the US market sustainably, it could add supply to an already oversupplied market.
Traders also continued to assess the impact on future oil exports and the energy sector, as firms including Trafigura prepare talks with US officials on resuming Venezuelan crude purchases.
Meanwhile, progress toward a US-Ukraine security agreement has raised the prospect of fewer curbs on Russian crude exports.
Elsewhere, API data showed US crude oil inventories fell by 2.8 million barrels last week, contrasting with market expectations for a 1.2 million-barrel increase.