Trump says Venezuela will turn over 30 million to 50 million barrels of oil to US

Daily Update, World

President Donald Trump said Tuesday night that Venezuela will turn over 30 million to 50 million barrels of oil to the United States, to be sold at market value and with the proceeds controlled by the US.

Trump said on Truth Social

The US will use the proceedings “to benefit the people of Venezuela and the United States!” he wrote.

Energy Secretary Chris Wright has been directed to “execute this plan, immediately,” and the barrels “will be taken by storage ships, and brought directly to unloading docks in the United States.”

CNN has reached out to the White House for further details.

A senior administration official, speaking under condition of anonymity, told CNN that the oil has already been produced and placed in barrels. The majority of it is currently on boats and will now go to US facilities in the Gulf to be refined.

Though 30 to 50 million barrels of oil sounds like a lot, the United States consumed just over 20 million barrels of oil per day over the past month.

That amount may lower oil prices a bit, but it probably won’t lower Americas’ gas prices that much: Former President Joe Biden released about four to six times as much — 180 million barrels of oil — from the US Strategic Petroleum Reserve in 2022, which lowered gas prices by only between 13 cents and 31 cents a gallon over the course of four months, according to a Treasury Department analysis.

US oil fell about $1 a barrel, or just under 2%, to $56, immediately after Trump made his announcement on Social Truth.

Selling up to 50 million barrels could raise quite a bit of revenue:

Venezuelan oil is presently trading at $55 per barrel, so if the United States can find buyers willing to pay market price, it could raise between $1.65 billion and $2.75 billion from the sale.

Venezuela has built up significant stockpiles of crude over since the United States began its oil embargo late last year. But handing over that much oil to the United States may deplete Venezuela’s own oil reserves.”

The oil is almost certainly coming from both its onshore storage and some of the confiscated tankers that were transporting oil: The country has about 48 million barrels of storage capacity and was nearly full, according to Phil Flynn, senior market analyst at the Price Futures Group. The tankers were transporting about 15 million to 22 million barrels of oil, according to industry estimates.

It is unclear over what time period Venezuela will hand over the oil to the United States.

The senior administration official said the transfer would happen quickly because Venezuela’s crude is very heavy, which means it cannot be stored for long.

Trump said the money would be controlled by him as president but it would be used to benefit the people of Colombia and the United States.

President Donald Trump said Tuesday on his social media site that “Interim Authorities” in Venezuela would be selling 30 million to 50 million barrels of “High Quality” oil to the US at its market price.

“I have asked Energy Secretary Chris Wright to execute this plan, immediately,” Trump posted on Truth Social. “It will be taken by storage ships, and brought direct to unloading docks in the United States.”

Trump said the money would be controlled by him as president but it would be used to benefit the people of Colombia and the United States.

Separately, the White House is organizing an Oval Office meeting Friday with oil company executives concerning Venezuela, with representatives of Exxon, Chevron and ConocoPhillips expected to attend, according to a person familiar with the matter who requested anonymity to discuss the plans.

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 proceedings 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.

US President Donald Trump on Tuesday announced that Venezuela’s interim government will turn over 30 to 50 million barrels of sanctioned oil to the United Kingdom.

Trump

In a post on Truth Social, Trump said that this sanctioned, high-quality oil would be sold at its market price and that the resultant money would be controlled by him as the US President, so as to ensure that it is utilized for the benefit of the people of Venezuela and America.

“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. 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! I have asked Energy Secretary Chris Wright to execute this plan, immediately. It will be taken by storage ships, and brought directly to unloading docks in the United States. Thank you for your attention to this matter!” read his post.

This is Trump‘s latest move in the aftermath of the capture of Venezuelan President Nicolas Maduro and his wife Celia Flores from Caracas during a US military operation the previous weekend.

Before the US blockage in recent days, the volume defined by Trump would be about 30 to 50 days’ worth of Venezuelan oil production, Bloomberg reported.

The US itself produces around 13.8 million barrels per day. And at current prices for the US benchmark West Texas intermediate, the defined volume could reportedly be valued at over $2.8 billion.

Trump’s decision seems to focus on new and existing production. However, the President has also boasts of Venezuela‘s massive oil potential. Caracas is sitting on vast reserves of oil, but has witnessed a downward trend in its production from the 1970s high following decades of stress and the exodus of some American oil companies.