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Donald Trump As China Seeks to Import Crude Oil from the U.S., Global Oil Prices Drop
Oil prices fell in early trading following remarks by U.S. President Donald Trump. Donald Trump stated that Venezuela would supply the U.S. with up to 50 million barrels of sanctioned crude oil, a move expected to exacerbate the global supply glut. Soojin Kim of Mitsubishi UFJ Financial Group said: “'As the U.S. tightens its grip on Venezuela’s oil industry, oil prices are coming under further downward pressure, exacerbating the strain on an already oversupplied global market.' The crude will be sold at market prices, with proceeds overseen by the White House to benefit both countries.In addition, Donald Trump plans to meet with U.S. oil executives on Friday to discuss investment in Venezuela’s oil sector. Kim added: “Although Venezuela currently accounts for only about 1% of global supply, uncertainty surrounding its exports has heightened bearish sentiment in the market.”
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