WASHINGTON – Venezuela will export crude oil worth an estimated Sh258 billion to the United States following an agreement reached with Washington, US President Donald Trump has confirmed.
Under the arrangement, Venezuela is expected to supply between 30 million and 50 million barrels of oil, which will be shipped to the US and sold under Washington’s control.
Trump said the deal reflects progress by Venezuela’s authorities toward opening the country’s oil sector to American companies — a key demand he has repeatedly made.
“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,” Trump said.
He added that interim President Delcy Rodriguez had been informed that the US government and private American firms must be granted full access to Venezuela’s oil industry.
Trump directed Energy Secretary Chris Wright to implement the plan immediately, saying the oil would be loaded onto storage vessels and transported directly to US unloading docks.
The exports are expected to boost supplies to the United States, the world’s largest oil consumer, and had an immediate impact on global markets. Following Trump’s announcement, oil prices fell sharply.
Brent crude futures dropped by 81 cents, or 1.3 per cent, to Sh7,725.81 a barrel, while West Texas Intermediate crude declined by Sh129, or 1.7 per cent, to Sh7,240.77 a barrel by 0550 GMT.
The deal follows a prolonged standoff between Washington and Caracas. Trump had warned of increased military action if Venezuela failed to open its oil sector to US companies.
Shortly after those warnings, US forces carried out a military operation that resulted in the capture of Venezuelan President Nicolas Maduro, a development that dramatically altered the country’s political landscape.
Venezuela has large volumes of oil stored in tankers and facilities after a US blockade imposed in mid-December halted exports, leaving several cargoes stranded and unable to reach international buyers.
Analysts say supplying oil to the US could require diverting shipments originally destined for China, which has been Venezuela’s largest oil buyer over the past decade.
China’s role expanded after Washington imposed sanctions in 2020 on companies trading Venezuelan crude, pushing Caracas to rely heavily on Asian markets.
The new agreement is expected to reduce Venezuelan exports to Asia while increasing flows to the US, underscoring Washington’s effort to reshape Venezuela’s oil trade and curb the influence of other foreign buyers.
The deal places Venezuela’s oil sector under close US oversight at a time of deep political and economic uncertainty in the South American nation.
While the long-term impact on Venezuela’s economy and global energy markets remains unclear, the agreement signals a significant shift in how Venezuelan oil reaches international markets.
