Oil Slides Toward $60 as European Energy Stocks Tumble
hares of Repsol fell as much as 2%, while TotalEnergies and Shell declined 2.3% and 2.4%, respectively. In contrast, Chevron traded up.
Quick overview
- Oil prices continued to decline due to geopolitical uncertainty surrounding Trump's plans for Venezuela's oil reserves.
- Brent crude futures fell 0.31% to $60.52 per barrel, marking a third consecutive session of losses.
- European energy stocks were negatively impacted, with Repsol, TotalEnergies, and Shell all experiencing declines.
- Analysts suggest that while increased oil supply could boost global economic activity, rising geopolitical risks may overshadow these benefits.
Oil prices extended their decline on Wednesday amid growing geopolitical uncertainty driven by Donald Trump’s plans regarding Venezuela’s oil reserves, pressuring global prices and dragging down energy stocks.
Crude continued to slide as markets digested Trump’s proposal to seize Venezuelan oil reserves and his latest move involving Greenland, which together put a pause on the New Year rally. Brent crude futures fell 0.31% to $60.52 per barrel, while WTI dropped 0.6% to $56.78. This marked a third consecutive session of losses following the capture of Nicolás Maduro over the weekend.
Trump reiterated in recent hours that Venezuela would deliver up to 50 million barrels of oil to be sold at market prices. At the same time, uncertainty over what Trump might do next—and how China could respond if its interests are affected—remained top of mind for investors, even if difficult to fully price into most asset classes. This new geopolitical backdrop has introduced risks that markets have yet to fully reflect.
Sharp Declines in European Energy Stocks
The news weighed heavily on European oil stocks. Shares of Repsol fell as much as 2%, while TotalEnergies and Shell declined 2.3% and 2.4%, respectively. In contrast, Chevron traded up as much as 0.6% in Wall Street’s premarket session.
According to Trump, the proceeds from the oil sales would be controlled by his administration “to ensure they are used for the benefit of the people of Venezuela and the United States.” He added that he had instructed Energy Secretary Chris Wright to implement the plan immediately, noting that the oil would be shipped via storage vessels and delivered directly to U.S. ports. Trump also described the oil as “high quality” and “sanctioned.”
The Wall Street Journal reported on Tuesday that Trump plans to meet at the White House on Friday with executives from major U.S. oil companies—including Chevron, ConocoPhillips, and Exxon Mobil—as well as other domestic producers, to discuss “significant investments” in Venezuela’s oil sector. Chevron is currently the only major U.S. oil company operating in Venezuela and exported roughly 140,000 barrels per day in the fourth quarter of 2025, according to energy consultancy Kpler.
The most likely outcome, analysts say, is a boost to global economic activity from additional oil supply. While this is clearly negative for crude prices themselves, lower energy costs are broadly supportive for the global economic outlook. The downside, however, is that rising geopolitical uncertainty could ultimately overshadow any positive economic effects.
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