Caracas and Washington have struck an agreement that would allow Venezuela to export up to $2 billion worth of crude oil to the United States, U.S. President Donald Trump said on Tuesday. The deal, described as a major breakthrough, would redirect oil supplies away from China while easing pressure on Venezuela to make deeper production cuts.
The agreement signals that the Venezuelan government is responding to Trump’s demands to grant greater access to U.S. oil companies, or face the risk of further military action. Trump has said he wants interim President Delcy Rodríguez to provide the United States and private firms with “total access” to Venezuela’s oil sector. Venezuela currently has millions of barrels of crude stored on tankers and in terminals that it has been unable to export due to a U.S. blockade imposed in mid-December.
That blockade formed part of escalating U.S. pressure on President Nicolás Maduro’s government, which culminated in Maduro’s capture by U.S. forces over the weekend. Senior Venezuelan officials have condemned the move as a kidnapping and accused Washington of attempting to seize control of the country’s vast oil reserves.
Trump said Venezuela would hand over between 30 million and 50 million barrels of what he called “sanctioned oil” to the United States. In a social media post, he said the oil would be sold at market prices, with proceeds overseen by him to ensure they benefit both Venezuela and the United States. U.S. Energy Secretary Chris Wright has been tasked with implementing the deal, with shipments to be taken from vessels and delivered directly to U.S. ports.
Redirecting the stranded crude to the U.S. would initially involve rerouting cargoes originally destined for China, which has been Venezuela’s largest buyer over the past decade, particularly since U.S. sanctions were imposed in 2020. An industry source said Trump is keen to move quickly so he can present the deal as an early political victory.
Following Trump’s announcement, U.S. crude prices fell more than 1.5%, as markets anticipated higher Venezuelan oil flows to the United States. Currently, those exports are handled exclusively by Chevron, PDVSA’s main joint-venture partner, under a U.S. licence. Chevron has been shipping between 100,000 and 150,000 barrels per day of Venezuelan crude and is the only company to have maintained uninterrupted exports during the blockade.
It remains unclear whether Venezuela will gain access to any of the proceeds, as sanctions exclude PDVSA from the global financial system, freeze its accounts and prevent dollar transactions. Venezuela has been selling its main crude grade, Merey, at a discount of about $22 per barrel to Brent, valuing the deal at up to $1.9 billion. Rodríguez, who was sworn in as interim president on Monday, is herself under U.S. sanctions imposed in 2018.
Officials from both countries have discussed potential sales mechanisms, including auctions for U.S. buyers and new licences for PDVSA partners that could lead to supply contracts. Past licences have allowed firms such as Chevron, India’s Reliance, China’s CNPC, and Europe’s Eni and Repsol to access Venezuelan oil for refining or resale. Some of these companies have reportedly begun preparing to receive cargoes again.
The two sides have also discussed the possibility of Venezuelan oil being used for the U.S. Strategic Petroleum Reserve, though Trump did not mention this option.
U.S. Interior Secretary Doug Burgum said increased Venezuelan oil flows to the U.S. Gulf Coast would be “great news” for job security, gasoline prices and Venezuela’s economy. He said American investment and technology could help rebuild the country.
U.S. Gulf Coast refineries are well suited to process Venezuela’s heavy crude and were importing around 500,000 barrels per day before sanctions were first imposed. PDVSA has already been forced to cut output due to storage constraints, and further reductions would be likely without export relief. Traders reacted swiftly to the news, with differentials for heavy crude grades in the U.S. Gulf falling by about 50 cents per barrel on expectations of increased supply.
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