The United States has reached a deal with Venezuela to buy up to $2 billion worth of crude oil, President Donald Trump announced on Tuesday. The agreement would redirect Venezuelan oil away from China and bring some supplies to US ports.
“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!” Trump said in a post online.
Venezuelan officials and state oil company PDVSA did not immediately comment. Millions of barrels of Venezuelan oil have been stuck in storage or on tankers due to US sanctions, which have restricted exports and frozen PDVSA’s assets.
Trump said US Energy Secretary Chris Wright would oversee the deal. Some of the oil may be rerouted from shipments originally bound for China, which has been Venezuela’s largest customer in recent years.
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US crude prices fell more than 1.5% after the announcement, reflecting expectations of higher supply. Currently, Chevron is the only company exporting Venezuelan oil to the US, shipping between 100,000 and 150,000 barrels per day under a special US licence.
The announcement came hours after interim Venezuelan president Delcy Rodríguez rejected US claims of control over the country following the weekend capture of President Nicolás Maduro.
“The government of Venezuela rules in our country – no one else. There is no external agent governing Venezuela,” Rodríguez said in a televised address. She described the operation that seized Maduro as a “criminal attack” and “kidnapping,” and declared seven days of mourning for military personnel killed during the raid.