Canadian Oil Price Tumbles as Trump Targets Venezuela’s Oil

US to Control Venezuela Oil Sales, Energy Secretary Says

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By Robert Tuttle

January 7, 2026 at 3:41 PM UTC

Updated on

January 7, 2026 at 8:20 PM UTC

Canadian crude prices on the US Gulf Coast collapsed after President Donald Trump announced that Venezuela would relinquish as much as 50 million barrels of oil to the US that would be sold at market prices.

Canadian Cold Lake crude, a grade that is similar to Venezuelan heavy oil, traded on Wednesday at a discount to a monthly average of the US benchmark West Texas Intermediate of $8.50 a barrel versus $6.80 on Tuesday, according to Modern Commodities prices. If the discount closes the day near this level, it would be the largest since late 2023, according to Link Data Services.