HOUSTON/WASHINGTON — Venezuela and the United States have reached an agreement that would allow the export of up to $2 billion worth of Venezuelan crude oil to the US, President Donald Trump announced Tuesday, in a deal that could redirect shipments away from China and ease pressure on Venezuela’s oil production.
Trump said Caracas would deliver between 30 million and 50 million barrels of what he described as “sanctioned oil” to the United States, with the crude sold at market prices and shipped directly to US ports.
The arrangement comes as Venezuela struggles with millions of barrels stranded on tankers and in storage due to a US export blockade imposed in mid-December.
The deal signals a response by Venezuelan authorities to Washington’s demand that the country open its oil sector to US companies, amid escalating pressure on the government of President Nicolás Maduro, who was captured by US forces over the weekend.
Venezuelan officials have denounced the arrest as a kidnapping and accused the US of attempting to seize control of the country’s oil wealth.
Trump said US Energy Secretary Chris Wright will oversee the implementation of the agreement.
He added that proceeds from the oil sales would be controlled by the US government to ensure they benefit both Venezuela and the United States.
Industry sources said the initial supplies could come from cargoes originally bound for China, Venezuela’s largest oil buyer over the past decade.
Chevron currently controls Venezuelan oil flows to the US under a special authorization and has been shipping between 100,000 and 150,000 barrels per day despite the blockade.
US crude prices fell more than 1.5% following Trump’s announcement, as markets anticipated increased supply.
Venezuela’s flagship Merey crude has recently been sold at a steep discount of about $22 per barrel below Brent, valuing the deal at roughly $1.9 billion.
Discussions between US and Venezuelan officials have also included possible auctions for US buyers, expanded licensing for PDVSA partners, and the potential future use of Venezuelan crude for the US Strategic Petroleum Reserve, according to sources familiar with the talks.
US officials said increased oil flows from Venezuela would benefit US refineries, particularly along the Gulf Coast, which are equipped to process heavy crude and once imported as much as 500,000 barrels per day from the South American nation before sanctions were imposed.