Venezuela and the United States of America have signed an agreement allowing Venezuela to export $2 billion worth of its crude oil to the U.S., President Donald Trump announced.
The US claimed the announcement marked a major development in negotiations between the two countries amid Venezuela’s deepening political and economic crisis.
The deal, which Trump described as a flagship negotiation, is expected to divert Venezuelan oil supplies away from China while helping the South American nation avoid steeper production cuts caused by export restrictions and storage constraints.
It also signals a shift in the U.S.–Venezuela relations following months of heightened pressure from Washington against Caracas.
According to Trump, the agreement reflects compliance by Venezuelan authorities with his administration’s demands that the country open its oil sector to U.S. companies, according to Reuters.
The U.S. president has repeatedly warned of further military intervention if such conditions were not met, calling for “total access” for American and private firms to Venezuela’s vast oil industry.
Venezuela currently has millions of barrels of crude loaded on tankers and held in storage facilities that it has been unable to export due to a blockade imposed by the United States in mid-December.
The export ban formed part of escalating U.S. pressure on the government of President Nicolás Maduro, which culminated in the capture of Maduro by U.S. forces over the weekend.
Venezuelan officials have denounced the move as a kidnapping and accused Washington of attempting to seize control of the country’s oil resources.
In a social media post, Trump said Venezuela would be “turning over” between 30 million and 50 million barrels of what he termed “sanctioned oil” to the United States.
He added that the crude would be sold at market prices, with proceeds controlled by the U.S. government to ensure they benefit both Venezuela and the United States.
Trump said U.S. Energy Secretary Chris Wright would oversee the execution of the deal, with oil taken directly from tankers and shipped to U.S. ports.
Sources familiar with the talks said some cargoes originally destined for China would be redirected to the United States, ending years in which Beijing had been Venezuela’s largest crude buyer, particularly after U.S. sanctions were imposed on companies trading Venezuelan oil in 2020.
An oil industry source said the U.S. president was keen to see early implementation of the agreement in order to present it as a major political and economic victory
Following the announcement, U.S. crude prices fell by more than 1.5 percent, as markets anticipated an increase in Venezuelan oil supplies entering the United States.
Currently, all Venezuelan crude flows to the U.S. are handled by Chevron, PDVSA’s main joint venture partner, under a special U.S. authorization.
Chevron has been exporting between 100,000 and 150,000 barrels per day of Venezuelan oil and remains the only company shipping crude uninterrupted in recent weeks despite the blockade.
It remains unclear whether Venezuela will gain direct access to proceeds from the sales.
The U.S. sanctions have effectively excluded state oil company PDVSA from the global financial system, freezing its bank accounts and barring transactions in U.S. dollars.
Venezuela’s flagship Merey crude has been trading at roughly $22 per barrel below Brent prices at Venezuelan ports, placing the value of the agreement at up to $1.9 billion, according to market estimates.
Interim President Delcy Rodríguez, sworn in on Monday, is herself under U.S. sanctions imposed in 2018 over allegations of undermining democratic processes.
Sources reportedly said Venezuelan and U.S. officials have discussed possible sales mechanisms, including auctions that would allow U.S. buyers to bid for cargoes, as well as the issuance of U.S. licenses to PDVSA’s partners.
In the past, such licenses enabled companies including Chevron, India’s Reliance, China National Petroleum Corporation, and European firms Eni and Repsol to access Venezuelan crude for refining or resale.
Some of these companies have already begun preparations to receive Venezuelan cargoes again, sources said.
Discussions have also touched on the potential future use of Venezuelan oil in the U.S. Strategic Petroleum Reserve, though Trump did not address that possibility.
U.S. Interior Secretary Doug Burgum said an increase in Venezuelan heavy crude supplies to the U.S. Gulf Coast would be “great news” for job security, gasoline prices, and Venezuela’s economy.
Speaking to Fox News, he reportedly said that Venezuela now has an opportunity to attract capital and rebuild its economy through American technology and partnerships.
Before U.S. energy sanctions were first imposed, refineries along the Gulf Coast were importing about 500,000 barrels per day of Venezuelan crude, which they are well equipped to process.
PDVSA has already been forced to cut production due to storage shortages caused by the embargo, and industry sources warn that without sustained export routes, further output reductions would be unavoidable.
Oil traders reacted quickly to reports of the deal, with differentials for some heavy crude grades in the U.S. Gulf Coast slipping by around 50 cents per barrel on Tuesday amid expectations of increased Venezuelan supply.
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