NewKerala.com

Trump Announces Venezuela to Send 50M Barrels of Oil to US, Reshaping Global Flows

US President Donald Trump announced that interim authorities in Venezuela will hand over 30 to 50 million barrels of sanctioned oil to the United States, with proceeds to benefit both nations. He stated the oil will be sold at market price and that he will personally oversee the revenue, directing Energy Secretary Chris Wright to execute the plan immediately. The move follows recent US military action that led to the capture of Venezuelan leader Nicolás Maduro and a change in leadership. This shift could reshape global crude flows, potentially reducing Venezuela's oil exports to China and affecting prices worldwide.

Key Points: Trump: Venezuela to Send Up to 50M Barrels of Oil to US

  • Up to 50M barrels of sanctioned oil
  • Revenue controlled by US presidency
  • Could reduce oil flows to China
  • Follows US military action in Venezuela
2 min read

Trump says Venezuela to send up to 50 million barrels of oil to US

US President Trump says Venezuela's interim government will send sanctioned oil to the US, a move that could shift global crude flows away from China.

"This oil will be sold at its market price - Donald Trump"

Washington, Jan 7

US President Donald Trump said interim authorities in Venezuela will hand over between 30 million and 50 million barrels of sanctioned oil to the United States, calling it a move that will benefit both Venezuelans and Americans.

In a social media post, Trump said the oil will be sold at market price and that he will personally oversee how the revenue is used. He wrote on Truth Social that the funds will be directed to benefit "the people of Venezuela and the United States."

Trump said he has asked Energy Secretary Chris Wright to carry out the plan immediately. According to the president, the oil will be loaded onto storage ships and transported directly to unloading docks in the United States.

"This oil will be sold at its market price," Trump wrote, adding that control of the proceeds will remain with the US presidency.

The announcement follows recent US military action in Venezuela that led to the capture of Venezuelan leader Nicolás Maduro and a change in leadership in Caracas. Trump has repeatedly said the United States is now setting the terms in Venezuela, including on oil, trade and security.

Trump's statement drew immediate global attention because Venezuela holds the world's largest proven oil reserves, but its production has collapsed due to sanctions, mismanagement and lack of investment.

Notably, India was once one of the largest buyers of Venezuelan crude before US sanctions forced Indian refiners to stop imports in 2019. Since then, India has relied more heavily on oil from the Middle East, Russia, and the United States.

Sending large volumes of Venezuelan oil to the US could reshape global crude flows. Heavy Venezuelan oil is well suited for US Gulf Coast refineries, which were earlier dependent on imports from Latin America and Canada.

If the plan moves forward, it could also reduce the amount of Venezuelan oil reaching China, currently the largest buyer of Caracas's crude under discounted and complex trade arrangements.

Any shift in global oil supply can affect prices and availability, which are closely watched in New Delhi due to India's heavy dependence on imported energy.

The president framed the move as both an economic and strategic decision. He has argued that tighter US control over Venezuelan oil will weaken criminal networks and stabilise the region.

"This will be taken immediately," Trump wrote, ending his message by thanking readers for their attention.

- IANS

Share this article:

Reader Comments

P
Priyanka N
So the US sanctions forced us to stop buying, and now they're taking the oil for themselves? Feels a bit like a power play. India should diversify its energy sources even more aggressively now. Can't rely on any single country or region. Solar and wind investment needs a bigger push! 🌞
A
Aman W
The article mentions this could reduce oil to China. Geopolitically, that's significant. If it weakens the discounted oil flow to one of our competitors, it might create a slight advantage for Indian manufacturing in the long run? Complex, but worth monitoring.
S
Sarah B
From a purely economic perspective, adding a large new supply to the US market could put downward pressure on global benchmarks. That would be a welcome relief for India's import bill and our current account deficit. Let's hope it translates to lower petrol prices 🤞
V
Vikram M
"Personally oversee how the revenue is used" – this sounds concerning. The sovereignty of a nation's resources is paramount. While the change in Caracas may be welcomed by some, the mechanism described here sets a worrying precedent for resource control by external powers. Respectfully, this approach seems heavy-handed.
K
Kavya N
Our foreign policy experts must be working overtime. This is a classic example of why India's stance of strategic autonomy and dealing with all nations is so important. We have to navigate between US, Russia, and Middle East for our energy security. Jai Hind!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50