President Donald Trump has announced that Venezuela will transfer between 30 million and 50 million barrels of crude oil to the United States, in a move that could have implications for global oil markets and Washington’s sanctions policy.
Trump made the disclosure on Tuesday night via his Truth Social platform, stating that Venezuela’s interim authorities would turn over what he described as “sanctioned oil” to the US.
According to him, the crude will be sold at prevailing market prices, with the proceeds placed under US control.
“The proceeds will be used to benefit the people of Venezuela and the United States,” Trump said, adding that US Energy Secretary Chris Wright has been directed to execute the plan “immediately.”
He further disclosed that the oil would be transported by storage ships and delivered directly to unloading docks in the United States, where it will be refined.
The White House has yet to provide full details on the agreement, but a senior administration official, speaking on condition of anonymity, told CNN that the oil has already been produced and stored.
The official said much of it is currently on tankers and will be redirected to US refining facilities along the Gulf Coast.
While the volume sounds significant, analysts note that it represents only a fraction of US daily consumption.
The United States currently consumes just over 20 million barrels of oil per day, meaning the transfer would cover only a few days of national demand.
Market reaction to the announcement was swift but limited. US crude prices fell by about $1 per barrel, or nearly 2 per cent, to $56 shortly after Trump’s statement was made public.
Energy analysts say the impact on fuel prices for American consumers is likely to be modest.
In 2022, former President Joe Biden released about 180 million barrels of oil from the US Strategic Petroleum Reserve four to six times the volume now proposed which resulted in a gas price reduction of only 13 to 31 cents per gallon over four months, according to a US Treasury Department analysis.
At current prices, the sale of up to 50 million barrels could generate between $1.65 billion and $2.75 billion in revenue, based on Venezuelan crude trading at around $55 per barrel.
Whether buyers will be willing to pay full market value, however, remains uncertain.
Venezuela has accumulated large crude stockpiles since the US tightened its oil embargo late last year.
Industry estimates suggest the country has nearly filled its onshore storage capacity of about 48 million barrels.
In addition, seized tankers are believed to be carrying between 15 million and 22 million barrels of oil.
Phil Flynn, a senior market analyst at the Price Futures Group, said the planned transfer is likely to draw from both storage facilities and tankers, potentially leaving Venezuela with limited reserves.
The timeframe for the oil handover remains unclear. The senior administration official said the transfer would occur quickly, citing the heavy nature of Venezuelan crude, which can pose storage challenges.
However, other experts dispute the urgency. Andrew Lipow, president of Lipow Oil Associates, noted that crude oil does not degrade simply because it is stored.
“It has sat underground for hundreds of millions of years,” he said, adding that oil in the US Strategic Petroleum Reserve has been stored for decades without issue.
The announcement adds another layer to the evolving US-Venezuela relationship, coming amid broader geopolitical tensions and renewed scrutiny of Washington’s approach to sanctions, energy security and foreign intervention.
