Trump says Venezuela to turn over up to 50 million barrels of oil to US

WASHINGTON: US President Donald Trump said on Tuesday (Jan 6) that Venezuela’s interim government will deliver up to 50 million barrels of oil to the United States, and that the proceeds “will be controlled by me” as president.

“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 posted on his Truth Social platform.

“This oil will be sold at its market price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the US.”

US crude fell more than 1 per cent ⁠on Wednesday following Trump’s announcement.

US West Texas Intermediate ⁠crude (WTI) fell 88 cents, or 1.54 per cent, ‍to US$56.25 a barrel by 1.14am GMT, extending its decline after closing down US$1.19, or 2.04 per cent, on Tuesday.

Raising crude output from Venezuela, which sits on the world’s largest oil reserves, is a top objective for Trump after US forces seized the country’s leader, Nicolas ‍Maduro, in a raid on its capital Caracas on ⁠Saturday.

The US president said after Maduro’s arrest that Washington would take control of the oil-producing nation and that the US ⁠embargo ‍on all Venezuelan oil remained in full effect.

Trump is expected to meet with oil company executives at the White House later this week to discuss ways to revive Venezuela’s tattered oil sector, according to sources familiar with the matter. 

Oil analysts and executives have been sceptical about a quick revival of Venezuela’s oil sector, pointing out that its degraded infrastructure would require billions of dollars and years to rebuild.

Venezuela’s oil reserves are also among the world’s costliest to develop because the oil is so thick and heavy that it requires specialised equipment to extract, transport and refine into usable fuels.

Administration officials have dismissed this scepticism, saying there were ways to quickly boost the country’s oil sector with fresh equipment and technology.