Oil prices fell on Wednesday after U.S. President Donald Trump announced that Venezuela would supply the United States with up to 50 million barrels of crude oil, valued at roughly $2 billion.

The deal, reported by oilprice.com, allows Venezuelan authorities to export “high-quality” oil to U.S. refineries at market prices. Following the announcement, Brent crude slipped below $60 per barrel, while WTI fell to $56.10. Analysts warn that prices could decline further as the additional supply reaches the market.

The arrangement comes amid ongoing restrictions on Venezuelan oil shipments. Venezuela’s state-owned PDVSA has been unable to send cargoes to Asia for nearly a week due to U.S.-imposed sanctions, though Chevron remains the only Western company authorized to operate in the country. As a result, China, the top buyer of Venezuelan crude has reduced its imports.

The move is part of a broader U.S. effort to access Venezuela’s oil reserves after the capture of President Nicolás Maduro by U.S. forces in early January. Following Maduro’s detention, Vice President Delcy Rodríguez was named acting president to maintain continuity, as the political crisis raises questions about Venezuela’s economic and energy future.

The new oil flow is expected to bolster supplies to U.S. Gulf Coast refineries and could limit illegal shipments of Venezuelan crude to other markets, particularly China.