President Donald Trump said Venezuela would deliver 30 million to 50 million barrels of oil to the United States, which would sell it at market price and the U.S. would control the proceeds.
Venezuela’s interim authorities will hand over “sanctioned oil,” President Trump said on Truth Social yesterday. The US intends to use the proceeds “for the benefit of the people of Venezuela and the United States”! he wrote.
Energy Secretary Chris Wright has been directed to “immediately implement this plan,” and the barrels will be “carried on storage vessels and transported directly to U.S. ports of discharge.”
A senior government official told CNN that the crude oil has already been produced and is being put into barrels. Most of it is on ships and will be sent to U.S. facilities in the Gulf for refining.
While 30 million to 50 million barrels of oil sounds like a lot, the United States has consumed just over 20 million barrels of oil per day over the past month. Oil prices may drop by that amount, but gasoline prices for Americans probably won’t go down that much.
Selling up to 50 million barrels could generate significant income. With Venezuelan oil currently trading at $55 a barrel, the U.S. could raise between $1.65 billion and $2.75 billion if it could find a buyer willing to pay the market price.
Venezuela has been building up oil stockpiles since the U.S. began an oil embargo late last year, but surrendering that much oil could deplete its reserves.
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