US strikes on Venezuela escalated into a full-blown campaign, with US authorities capturing Venezuelan President Nicolás Maduro. Moreover, Trump moved forward with an oil deal, announcing that Venezuela will “turn over” 30 to 50 barrels of oil to the US, to be sold at market prices. The $3 billion deal caught oil markets by surprise.
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Trump’s Venezuelan Oil Deal
In a new update, posted by the President of the United States, Donald Trump, Venezuela will now be “turning over” 30 to 50 barrels of oil to the US at market prices. Additionally, Trump explained that the proceeds from the deal will be controlled directly by the President, rather than routed through intermediaries. Furthermore, he stated that the funds will be used as a collective pool, aimed at easing the lives of both Venezuelan and US citizens.
“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. 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 United States! I have asked Energy Secretary Chris Wright to execute this plan immediately. It will be taken by storage ships and brought directly to unloading docks in the United States. Thank you for your attention to this matter!” Trump posted
Oil Market Reacts to the News
US oil stocks have reacted positively to the news, with leading oil firms like Chevron, Valero, and ConocoPhillips projecting an uptick of 11% and 10%, respectively.
“US OIL STOCKS REACT TO VENEZUELA. 1. Chevron, $CVX: +11%. 2. Valero, $VLO: +11%. 3. ConocoPhillips, $COP: +10%. 4. Marathon, $MPC: +10%. 5. Exxon Mobil, $XOM: +7%. 6. Phillips 66, $PSX: +6%. 7. Occidental Petroleum, $OXY: +4%. 8. EOG Resources, $EOG: +4%. 9. Devon Energy, $DVN: +4%. 10. Kinder Morgan, $KMI: +3%. US big oil has won again.”
Furthermore, Trump announced an oil deal in which Venezuela will “turn over” 30 to 50 million barrels of oil to the US. Basically, the US will sell this oil at prevailing market prices.
“There it is. Above all, oil prices are back below $57/barrel and nearing their lowest levels since 2021. In just about ALL major escalations of geopolitical tensions with oil-producing countries, energy prices typically RISE. So why is it different this time? Accordingly, the US taking control of Venezuela is set to bring more oil and natural gas supply into the market. Eventually, As a result, the market already understands that this weekend’s events will ultimately lead to the opposite of a supply disruptione of a supply disruption. The market is never wrong.”
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