President Donald Trump said on Tuesday that Venezuela’s interim authorities would transfer between 30 million and 50 million barrels of oil to the United States, with the crude to be sold at market prices and the proceeds controlled by the US government.“I am pleased to announce that 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 said in a post on Truth Social.
“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, to ensure it is used to benefit the people of Venezuela and the United States!” he added.Trump said he had directed Energy Secretary Chris Wright to “execute this plan, immediately,” adding that the oil “will be taken by storage ships, and brought directly to unloading docks in the United States.”CNN said it had reached out to the White House for further details. A senior administration official, speaking on condition of anonymity, told the network that the oil had already been produced and stored in barrels, with most of it currently on vessels that would now be diverted to US Gulf Coast facilities for refining.While the volume announced appears substantial, the United States consumed just over 20 million barrels of oil per day over the past month. Analysts said the transfer may have a limited impact on fuel prices. In 2022, former President Joe Biden released around 180 million barrels from the Strategic Petroleum Reserve, which lowered petrol prices by between 13 cents and 31 cents per gallon over four months, according to a Treasury Department analysis.Oil markets reacted modestly to Trump’s announcement, with US crude prices falling by about $1 a barrel, or just under 2%, to $56.At current prices, the sale of up to 50 million barrels could generate significant revenue. Venezuelan oil is trading at around $55 per barrel, meaning the total value could range between $1.65 billion and $2.75 billion if sold at market rates.Venezuela has accumulated large crude stockpiles since the United States imposed an oil embargo late last year. However, transferring such volumes to the US could significantly reduce the country’s reserves. The oil is expected to come from a mix of onshore storage and seized tankers previously transporting Venezuelan crude.The country has around 48 million barrels of onshore storage capacity, which was close to full, according to Phil Flynn, senior market analyst at Price Futures Group. Industry estimates suggest seized tankers were carrying between 15 million and 22 million barrels of oil.The timeline for the transfer remains unclear. The senior administration official told CNN that the handover would likely be rapid because Venezuela’s crude is very heavy and cannot be stored for extended periods.
