/images/ppid_59c68470-image-176775009637594516.webp)
What is the story about?
US President Donald Trump has said Venezuela will be sending the US 50 million barrels of oil and the same would be sold with the proceeds benefiting both countries.
“I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America,” Trump wrote in a social media post.
He said this oil will be sold at its market rate and the money will be controlled by him, as President of the US, "to ensure it is used to benefit the people of Venezuela and the United States!".
Post Trump's announcement, oil prices extended their losses. The West Texas Intermediate declined towards $56 after ending 2% lower on Tuesday, while Brent settled below $61.
At recent rates before the US blockade, the volume would represent about 30 to 50 days worth of Venezuelan oil production. The US itself produces about 13.8 million barrels per day.
At current prices for the US benchmark West Texas Intermediate, the volume could be valued at upwards of $2.8 billion.
Trump said the sanctioned oil “will be taken by storage ships, and brought directly to unloading docks in the United States.” In the post, the president said he’d tasked Energy Secretary Chris Wright with executing the plan “immediately.”
While Trump’s oil transfer appears to focus on new and existing production, Trump has also boasted of Venezuela’s mammoth oil potential. The country is blessed with vast reserves of oil, but its production has fallen from 1970s highs after decades of disrepair and the exodus of some US oil companies.
The market continues to digest the fallout from ouster of Venezuelan leader Nicolás Maduro by American forces, and what that means for oil exports and the country’s energy industry. Trafigura Group and other traders will hold talks with the US about how they can return to buying Venezuelan crude as Trump is set to meet with energy executives at the White House within the next week.
Meanwhile, the US and Ukraine’s allies converged toward an agreement on the security plan long sought by Kyiv during a meeting in Paris on Tuesday of the so-called coalition of the willing.
Any peace deal could pave the way for fewer curbs on Russian crude exports, adding to an already oversupplied market, though Moscow has largely kept its oil flowing to countries such as India and China since the war began.
With inputs from Bloomberg
“I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America,” Trump wrote in a social media post.
He said this oil will be sold at its market rate and the money will be controlled by him, as President of the US, "to ensure it is used to benefit the people of Venezuela and the United States!".
Post Trump's announcement, oil prices extended their losses. The West Texas Intermediate declined towards $56 after ending 2% lower on Tuesday, while Brent settled below $61.
At recent rates before the US blockade, the volume would represent about 30 to 50 days worth of Venezuelan oil production. The US itself produces about 13.8 million barrels per day.
At current prices for the US benchmark West Texas Intermediate, the volume could be valued at upwards of $2.8 billion.
Trump said the sanctioned oil “will be taken by storage ships, and brought directly to unloading docks in the United States.” In the post, the president said he’d tasked Energy Secretary Chris Wright with executing the plan “immediately.”
While Trump’s oil transfer appears to focus on new and existing production, Trump has also boasted of Venezuela’s mammoth oil potential. The country is blessed with vast reserves of oil, but its production has fallen from 1970s highs after decades of disrepair and the exodus of some US oil companies.
The market continues to digest the fallout from ouster of Venezuelan leader Nicolás Maduro by American forces, and what that means for oil exports and the country’s energy industry. Trafigura Group and other traders will hold talks with the US about how they can return to buying Venezuelan crude as Trump is set to meet with energy executives at the White House within the next week.
Meanwhile, the US and Ukraine’s allies converged toward an agreement on the security plan long sought by Kyiv during a meeting in Paris on Tuesday of the so-called coalition of the willing.
Any peace deal could pave the way for fewer curbs on Russian crude exports, adding to an already oversupplied market, though Moscow has largely kept its oil flowing to countries such as India and China since the war began.
With inputs from Bloomberg
/images/ppid_59c68470-image-176774752844773227.webp)
