Former US President Donald Trump has declared that Venezuela will be "turning over" between 30 and 50 million barrels of sanctioned oil to the United States. This announcement comes as the South American nation struggles with a crippling export blockade imposed by Washington.
A Deal to Divert Oil from China
Trump stated the move is part of an effort to help Venezuela avoid severe production cuts. The oil, which is currently loaded on tankers or in storage and unable to be shipped due to the US blockade, will be sold at market price. "That money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!" Trump said in an online post.
Reports suggest officials from Caracas and Washington had been discussing a plan to export Venezuelan crude to US refiners. This deal would effectively divert supplies away from China, which has been Venezuela's primary oil buyer for the last decade, and provide a lifeline to the state-owned oil company, PDVSA.
Execution and Geopolitical Context
Trump claimed he has directed Energy Secretary Chris Wright to execute the plan "immediately," with the oil to be taken by storage ships directly to US unloading docks. This development follows a sustained pressure campaign against the government of Nicolás Maduro, which culminated in the leader being seized by US forces over the weekend.
The ongoing US blockade, in place since mid-December, has severely restricted Venezuela's ability to export its most vital commodity, creating a significant economic and logistical crisis for the nation.
Implications for Global Oil Markets
This potential transfer of tens of millions of barrels represents a significant shift in the geopolitical landscape of oil. Key implications include:
- A direct challenge to Chinese energy interests in Venezuela.
- Financial relief for PDVSA, potentially staving off deeper output cuts.
- Increased US influence over Venezuelan resources and revenue.
The announcement marks a dramatic escalation in US efforts to control the flow of Venezuelan oil and reshape the economic fortunes of the crisis-hit country.
