US President Donald Trump says Venezuela’s interim authorities have agreed to transfer between 30 million and 50 million barrels of sanctioned crude oil to the United States following the capture of former president Nicolás Maduro.
In a social media post on Tuesday, Trump said the oil would be sold at market prices, with the proceeds controlled by the US government. He said the funds would be used “to benefit the people of Venezuela, and the United States”.
Trump said he had directed US Energy Secretary Chris Wright to execute the plan immediately, with the oil to be transported by storage vessels and unloaded directly at US ports.
According to sources cited by CNBC, the initial shipment represents only the first tranche, with Venezuelan oil supplies expected to continue flowing to the US on an indefinite basis. Those sources said US sanctions on Venezuela would be selectively rolled back to allow transportation and sale of the oil, with proceeds settling in US-controlled accounts and released to Venezuela at Washington’s discretion.
Speaking at a Goldman Sachs energy conference in Miami, Wright confirmed that the US intends to manage both existing stored crude and future Venezuelan oil production. He said the arrangement would give Washington leverage over Venezuela’s economic and political direction.
Venezuela holds the world’s largest proven crude oil reserves and is a founding member of OPEC, but years of underinvestment, sanctions and mismanagement have reduced output to about 800,000 barrels a day, according to data from energy consultancy Kpler. By comparison, US production is currently around 13.8 million barrels per day.
Trump has described US investment in Venezuela’s oil sector as a central objective of the military operation that removed Maduro from power last weekend. He has urged major US oil companies to invest billions of dollars to rebuild Venezuela’s energy infrastructure, from wellheads to pipelines.
The White House said on Wednesday that Trump reserves the right to use military force to protect US oil workers and assets in Venezuela if necessary, although press secretary Karoline Leavitt said diplomacy remained the administration’s preferred option. The US does not currently have troops stationed in the country.
US oil executives from Chevron, ExxonMobil and ConocoPhillips are expected to meet Trump at the White House later this week to discuss potential investments. Chevron is currently the only US oil major operating in Venezuela under a special licence.
Oil markets reacted immediately to Trump’s announcement. US crude futures fell more than 1%, trading near US$56 a barrel, amid expectations that increased Venezuelan supply could add to an already oversupplied global market.
China, which has taken the majority of Venezuela’s crude exports in recent years, criticised the move. Beijing said Venezuela retains full sovereignty over its natural resources and warned that US control of Venezuelan oil sales violates international law.
Analysts said the scale and timing of the oil transfers will be critical in determining their market impact. While 30–50 million barrels would be significant if delivered quickly, it represents a relatively small share of global consumption if spread over a longer period.
Estimates from energy consultancy Rystad Energy suggest restoring Venezuela’s production to even two million barrels per day would require more than US$100bn in investment and could take many years.
