Washington (TDI): US President Donald Trump stated on Tuesday that Venezuela’s interim government is set to supply the United States with up to 50 million barrels of oil, with the proceeds “under my control” as president.
The announcement signals Caracas’ willingness to meet Trump’s demand for allowing US oil companies greater access, following threats of further military pressure. Trump has called on interim President Delcy Rodriguez to grant the US and private firms “full access” to Venezuela’s oil sector.
Venezuela currently holds millions of barrels in tankers and storage, unable to export due to a blockade imposed by the US since mid-December. This measure was part of escalating pressure on President Nicolas Maduro’s administration, culminating in US forces reportedly carrying out a “large-scale strike” and capturing him over the weekend. Venezuelan officials have accused the US of attempting to seize their oil reserves.
Trump wrote on social media that Venezuela will transfer between 30 and 50 million barrels of “sanctioned oil” to the US, adding, “This oil will be sold at market price, and the money will be managed by me as President of the United States to ensure it benefits both Venezuela and the US.”
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US Energy Secretary Chris Wright will oversee the operation, which involves shipping the oil directly to American ports. Some cargoes may need to be rerouted from shipments originally intended for China, Venezuela’s largest buyer over the past decade, especially since US sanctions in 2020 restricted international oil trade.
Following Trump’s statement, US crude prices fell more than 1.5%, reflecting expectations of increased Venezuelan oil supply to the American market. Currently, Chevron, PDVSA’s main joint venture partner, is the only company exporting Venezuelan crude uninterrupted, averaging 100,000–150,000 barrels per day.
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It remains unclear if Venezuela will have access to the revenue, as sanctions prevent PDVSA from operating in the global financial system, freezing its accounts and restricting dollar transactions. Venezuela’s flagship crude, Merey, has been selling at roughly $22 below Brent, giving the potential deal a value near $1.9 billion.
