Venezuela will send between 30 million and 50 million barrels of oil to the United States; President Donald Trump announced on Tuesday.
The shipment could be worth up to $2.8 billion, showing a major shift in U.S.–Venezuela energy relations. The crude oil will go directly to U.S. ports and sell at market prices. Trump said the revenues will be managed by the U.S. government and will benefit both Americans and Venezuelans.
This deal comes after recent geopolitical developments and involves oil that had been blocked under previous sanctions. Analysts say the transfer may affect global oil markets, as the U.S. will get a significant supply. Oil prices reacted quickly, with U.S. crude benchmarks dropping as traders included the new supply in calculations.
The proven oil reserves in Venezuela are the largest in the world, yet its production decreased because of years of underinvestment and sanctions. To normalise the output will demand significant investments in infrastructure and optimisation. According to experts, this would redefine the energy trade and diplomacy and would not only have an impact on U.S.-Latin America relations but also on the global oil pricing environment.
