Trump Says Venezuela to Transfer Up to 50M Barrels of Oil to U.S.
President Donald Trump announced Tuesday night that Venezuela will transfer between 30 million and 50 million barrels of oil to the United States. The U.S. will sell the barrels at market value, and the proceeds will benefit both Americans and Venezuelans.
Trump made the announcement on Truth Social, stating that Venezuela’s interim authorities will hand over the “sanctioned oil” to the U.S. He directed U.S. Energy Secretary Chris Wright to immediately execute the plan. The oil will travel via storage ships to U.S. unloading docks for refining.
A senior administration official, speaking on condition of anonymity, confirmed that the oil has already been produced and placed in barrels. The majority of it is on ships and will head to U.S. facilities in the Gulf for refining.
Oil Market Impact
Though 30 to 50 million barrels might sound like a large amount, the U.S. consumes over 20 million barrels per day. While this transfer may lower oil prices slightly, it is unlikely to substantially impact American gas prices. In 2022, Former President Joe Biden released 180 million barrels from the Strategic Petroleum Reserve, which only resulted in a 13 to 31-cent drop in gas prices over four months.
After Trump’s announcement, oil prices dropped by about $1 per barrel, or roughly 2%. Venezuela’s oil currently trades at $55 per barrel, meaning the U.S. could generate between $1.65 billion and $2.75 billion if buyers purchase at market rates.
Venezuela’s oil reserves have built up since the U.S. imposed an oil embargo late last year. However, this transfer may deplete the country’s stockpiles.
Storage and Transport Details
The oil will likely come from both Venezuela’s onshore storage and seized tankers. The country has approximately 48 million barrels of storage capacity, which is nearly full. The tankers currently hold between 15 million and 22 million barrels of oil.
Venezuela is transferring the oil quickly because its crude is very heavy, preventing it from being stored for long periods. However, according to Andrew Lipow, president of Lipow Oil Associates, crude oil doesn’t spoil if it isn’t refined quickly. Much of the oil in the Strategic Petroleum Reserve has been stored for decades.
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Legal and Diplomatic Questions
The announcement has raised immediate questions about the legal authority for Venezuela to transfer the oil to the U.S. Legal experts have questioned whether a president can unilaterally control foreign oil assets without congressional approval.
Trump described the plan as part of a coordinated effort with Venezuela’s interim leadership. However, details about the agreement remain unclear.
Broader U.S.–Venezuela Relations
Officials have indicated that future oil transfers may exceed the initial 50 million barrels. Venezuela, which has the world’s largest proven oil reserves, could play a more significant role in the global energy market if this agreement progresses.
This plan could signal a shift in U.S.–Venezuela relations, as easing sanctions on Venezuelan oil may reshape diplomatic and economic ties.