Source The Hindu
WASHINGTON D.C. — In a move that further signals a total shift in South American geopolitics, President Donald Trump announced on Tuesday that Venezuela’s interim authorities will “turn over” up to 50 million barrels of crude oil to the United States.
The announcement, made via Truth Social, comes just days after a high-stakes U.S. military operation in Caracas resulted in the capture of Nicolás Maduro. The President stated that the oil, which has been sitting in storage or on sanctioned vessels due to long-standing blockades, would be transported immediately to U.S. ports for refining and sale.
“Controlled by Me”
President Trump emphasized that the proceeds from the sale of this oil—estimated to be worth approximately $2.8 billion at current market prices—will be managed directly by the White House.
“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 wrote. He added that the funds would be used to “benefit the people of Venezuela and the United States,” though specific details on the allocation of these funds have yet to be released.
Immediate Logistics and Market Reaction
Energy Secretary Chris Wright has been directed to execute the plan “immediately.” According to administration officials, the oil is already “in the pipe,” consisting of high-quality sanctioned crude currently held in onshore tanks and offshore tankers.
Volume: 30 to 50 million barrels.
U.S. Demand: This represents roughly two and a half days of total U.S. daily oil consumption.
Market Impact: Oil prices saw a modest dip following the news, with West Texas Intermediate (WTI) falling nearly 2% to around $56 per barrel.
A New Era for Venezuelan Energy?
The “turnover” is widely seen as an initial peace offering—or a mandatory concession—from the interim government led by Delcy Rodríguez. While Rodríguez has publicly pushed back against some of Washington’s rhetoric, the deal underscores the immense pressure on the new administration in Caracas to align with U.S. interests.
The White House is scheduled to meet with executives from Exxon, Chevron, and ConocoPhillips this Friday. The goal of the summit is reportedly to discuss the “reconstruction” of Venezuela’s crumbling energy infrastructure, which has seen production plummet from over 3 million barrels per day in the early 2000s to less than 1 million today.
Critics and international observers have raised concerns over the legality of the U.S. President personally controlling the revenue of a sovereign nation’s resources. However, the Trump administration maintains that the move is a necessary “economic reset” to stabilize the region and recoup costs associated with the recent military intervention.
