US to receive 30-50 million barrels of Venezuelan oil, says Trump

Trump says Venezuela's interim authorities will hand over 30-50 million barrels of sanctioned oil to the US at market price, with proceeds controlled by him, following the capture of Nicolás Maduro

US President Donald Trump said Venezuela’s interim authorities would provide between 30 million and 50 million barrels of high-quality, sanctioned oil to the US at market price. The announcement was made in a post on Trump’s social media platform, Truth Social.

 

In his post, Trump said Venezuela would turn over the oil to the US, which would sell it at market prices. He said proceeds from the sale would be under his control as US president and would be used to benefit the people of both Venezuela and the US.

 

“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America,” Trump wrote, adding that the funds would be used “to ensure it is used to benefit the people of Venezuela and the United States.”

When and how will the oil transfer take place?

According to Trump, the oil transfer would be executed immediately. He said he had directed Energy Secretary Chris Wright to carry out the plan without delay. 

Trump said the oil would be transported using storage ships and unloaded directly at US ports. “I have asked Energy Secretary Chris Wright to execute this plan, immediately,” he wrote.  ALSO READ | How US' military operation in Venezuela could impact oil supply chains

How much could the oil deal be worth?

With oil trading at around $56 per barrel, the transaction announced by Trump late Tuesday (local time) could be worth as much as $2.8 billion. 

The US consumes about 20 million barrels of oil and related products per day, meaning the Venezuelan oil transfer would be equivalent to roughly two and a half days of US supply, according to the US Energy Information Administration. 

The White House is organising an Oval Office meeting on Friday with oil company executives to discuss Venezuela, according to a report by the Associated Press. Representatives from Exxon, Chevron and ConocoPhillips are expected to attend the meeting.

What is the backdrop to Trump’s announcement?

The announcement came days after US forces seized Venezuelan leader Nicolás Maduro in a late-night military operation that significantly altered the country’s political situation. 

Officials in Caracas later said that at least 24 Venezuelan security officers were killed during the operation to capture Maduro and take him to the US to face drug charges.  ALSO READ | US may reimburse oil companies investing in Venezuela, says Trump

How has Venezuela responded?

Earlier on Tuesday (local time), Venezuela’s acting President Delcy Rodríguez pushed back against Trump’s remarks. Trump had warned earlier in the week that Rodríguez would face consequences worse than Maduro’s if she failed to “do what’s right” and overhaul the country to align with US interests. 

Trump has said his administration will now run Venezuela policy and is pressing the country’s leaders to open its oil reserves to American energy companies.

How did Trump respond to domestic criticism?

Trump rejected criticism from Democrats over the military operation, noting that his predecessor Joe Biden had also called for Maduro’s arrest on drug trafficking charges.

 

Speaking before a House Republican retreat in Washington, Trump complained that Democrats were not giving him credit for what he described as a successful operation, even though there was bipartisan agreement that Maduro was not Venezuela’s rightful president.