FTSE 100 Index (^FCE) moved lower on Wednesday, while European shares were mixed as US intervention in Venezuela continued to cause unrest in markets.
Donald Trump said that Venezuela will send 30 to 50 million barrels of oil to the United States (CL=F, BZ=F), which will then be sold for up to $2.8bn (£2.1bn).
In a post on his Truth Social website, Trump said: “I am pleased to announce that the interim authorities of Venezuela will transfer 30 to 50 million barrels of high-quality authorized oil to the United States of America.”
“This oil will be sold at its market price, and this money will be controlled by me, as the President of the United States of America, to ensure that it is used for the benefit of the people of Venezuela and the United States!”
His comments came after he said US oil (CL=F, BZ=F) the industry will be “up and running” in Venezuela within 18 months, and he expects huge investments to pour into the country.
There are currently millions of barrels of Venezuelan oil available (CL=F, BZ=F) hidden on tanks and in storage tanks due to the US blockade imposed by Trump.
Increase in oil production in the country (CL=F, BZ=F) would be expensive for US firms. Venezuelan oil is also heavy and more difficult to refine because Chevron (CVX) is currently the only American company operating in the country.
Trump said he wants interim President Delcy Rodriguez to give the US and private companies “full access” to Venezuelan oil (CL=F, BZ=F) industry.
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London Core Index (^FCE) was 0.3% lower in early trading, with energy stocks falling in early trading.
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German DAX (^GDAXI) increased by 0.4%, and CAC (^FCHI) in Paris went into negative territory by 0.3%.
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Pan-European STOXX 600 Index (^STOXX) hovered around a flat line.
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Wall Street is off to a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NK=F) were all green.
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The pound was unchanged against the US dollar (GBPUSD=X) at the level of 1.3496.
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