Caracas and Washington have reached a landmark agreement allowing the export of up to two billion dollars worth of Venezuelan crude to the United States, President Donald Trump announced on Tuesday. The deal marks a sharp shift in energy flows, as it redirects oil previously bound for China while easing pressure on Venezuela’s strained production. Moreover, the agreement signals growing compliance by Caracas with Washington’s demands to open its energy sector to US firms.
Pressure Mounts After Maduro’s Capture
Trump said the agreement reflects his administration’s insistence that Venezuela grant US companies broad access to its oil industry. Meanwhile, Venezuela has accumulated millions of barrels of crude on tankers and in storage after a US export blockade imposed in mid-December. That blockade formed part of escalating pressure on President Nicolas Maduro’s government, which culminated in US forces capturing Maduro over the weekend.
However, senior Venezuelan officials denounced the capture as a kidnapping and accused Washington of seeking control over the country’s oil wealth. Trump stated that Venezuela would transfer between 30 and 50 million barrels of sanctioned oil, with sales conducted at market prices. He added that proceeds would be overseen by the US government to benefit both nations. US Energy Secretary Chris Wright will supervise implementation, including diverting cargoes directly to American ports.
Chevron’s Central Role in Oil Flows
Following the announcement, US crude prices fell more than 1.5 percent as markets anticipated increased supply. Currently, Chevron controls all Venezuelan oil exports to the US under a special authorization and ships up to 150,000 barrels per day. Still, it remains unclear whether Venezuela will access revenues, as sanctions continue to freeze PDVSA’s accounts and restrict dollar transactions.
Officials from both countries have discussed auction-based sales and new licenses for US buyers. Additionally, talks included possible future use of Venezuelan oil in the US Strategic Petroleum Reserve, although Trump made no reference to that option.
