WTI Crude Slips as Venezuela Oil Deal Increases Supply Outlook

The Venezuela Factor

President Trump's announcement of a multi-billion dollar energy deal with Venezuela has effectively neutralised the 'war premium.' Traders are now pivoting back to the fundamental oversupply narrative, expecting global inventories to rise throughout Q1 2026.

Technical Downtrend

WTI has broken below its 50-day moving average, signaling a bearish technical shift. Analysts anticipate support at the $55 level, but further declines are possible if US domestic production continues at its current record pace.