Trump to control oil revenues as Venezuela sends 50 million barrels to the US

Foreign news agencies, including CNBC, Al Jazeera, BBC, and The Guardian, have reported that US President Donald Trump announced Venezuela’s interim authorities are preparing to deliver between 30 and 50 million barrels of crude oil to the United States.

This announcement came just days after US forces apprehended former dictator Nicolás Maduro and his wife in Caracas, before sending them to New York to face charges of drug trafficking conspiracy.

Trump stated that the oil, which is of high quality and previously sanctioned, will be sold at market prices. He emphasised that the proceeds would be controlled by him, as President of the United States, to ensure they benefited the people of both Venezuela and the United States.

Furthermore, Trump instructed Energy Secretary Chris Wright to immediately implement this plan, with the oil being transported by storage vessels directly to US ports.

The move caused US crude oil futures prices to drop by approximately 1.3% to 1.5%, settling at $56.39 per barrel.

Reports indicate that Trump plans to meet with representatives from major US oil companies such as Chevron, ConocoPhillips, and Exxon Mobil at the White House this Friday to discuss substantial investments aimed at restoring Venezuela’s decaying oil industry. 

Trump believes these companies can repair infrastructure and help Venezuela return to being a major oil producer, which he argues will help stabilise US oil prices.

However, some analysts remain sceptical about the feasibility of this plan, citing Venezuela’s need for $110 billion in investment and the decades-long timeline required to restore its oil production to former levels.

Meanwhile, Venezuela's interim President, Delcy Rodríguez, has taken a more aggressive stance, stating that no foreign representative will govern Venezuela, despite previously expressing a willingness to cooperate.