United States President Donald Trump on Tuesday night confirmed that Venezuela will export between 30 million and 50 million barrels of crude oil to the United States, to be sold at market value, with the proceeds controlled by the U.S. government.
The move signals a major shift away from China, which had been a key destination for Venezuelan crude prior to the recent U.S. military intervention and the abduction of President Nicolás Maduro last Saturday.
“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.
According to Trump, the proceeds from the sale will be used “to benefit the people of Venezuela and the United States.”
He added that Energy Secretary Chris Wright has been directed to “execute this plan immediately,” noting that the oil “will be taken by storage ships and brought directly to unloading docks in the United States.”
A CNN report, quoting an unnamed senior U.S. administration official, said the oil has already been produced and stored.
“The majority of it is currently on boats and will now go to U.S. facilities in the Gulf to be refined,” the official said.
Although 30 to 50 million barrels of oil is a significant volume, the United States consumed just over 20 million barrels of oil per day over the past month.
As a result, the supply may have only a limited impact on fuel prices.
Former President Joe Biden released about 180 million barrels—roughly four to six times that amount—from the U.S. Strategic Petroleum Reserve in 2022, which lowered gasoline prices by between 13 and 31 cents per gallon over four months, according to a U.S. Treasury Department analysis.
U.S. oil prices fell by about $1 per barrel, or just under 2 percent, to $56 immediately after Trump made the announcement on Truth Social.
At current prices, selling up to 50 million barrels could generate substantial revenue.
Venezuelan crude is trading at approximately $55 per barrel, meaning total proceeds could range between $1.65 billion and $2.75 billion, assuming buyers pay market prices.
Venezuela has accumulated significant crude stockpiles since the United States imposed its oil embargo late last year.
However, handing over such a large volume of oil could substantially deplete the country’s reserves.
It remains unclear over what period the oil will be transferred.
The senior administration official said the process would be swift, noting that Venezuela’s crude is extremely heavy and cannot be stored for extended periods.
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