U.S. President Donald Trump announced on Tuesday that Venezuela will transfer up to 50 million barrels of oil to the United States, a move he says could be worth around $2.8 billion at current market prices. The announcement comes in the wake of a recent U.S. military operation that removed Venezuelan leader Nicolás Maduro from power.
Trump said the oil will be sold at market prices, and the proceeds will be controlled by him as president to ensure the revenue is used for the benefit of both the Venezuelan people and the American public.
“The Interim Authorities in Venezuela will be turning over between 30 and 50 million barrels of high-quality, sanctioned oil to the United States of America,” Trump wrote on his social media platform. “This oil will be sold at its market price, and that money will be controlled by me… to ensure it is used to benefit the people of Venezuela and the United States!”
Details and Context
According to Trump’s announcement, the Venezuelan interim government agreed to transfer the oil soon after the recent U.S. operation in Caracas. The proceeds from selling the oil are intended to help address economic needs in both countries, though details about how the funds will be allocated remain limited.
Trump has also indicated plans for U.S. energy companies to assist in reviving Venezuela’s oil sector, pointing to potential major investments. Analysts, however, have warned that restoring Venezuela’s oil production to previous levels could require billions of dollars and take years.
Background and Reaction
The announcement arrives just a day after Delcy Rodríguez, former vice president of Venezuela, was sworn in as interim president, following Maduro’s removal. Meanwhile, Maduro has been transported to the United States to face charges including drug and arms trafficking.
Trump told NBC News that having Venezuela as an oil producer supplying the U.S. would help keep global oil prices lower. He also said that American oil companies could play a significant role in rebuilding Venezuela’s energy industry.
Market Impact
Following the announcement, international oil prices declined, with benchmark U.S. crude futures falling by more than 1% as markets responded to the expected increase in supply.
