Caracas and Washington have reached a deal for Venezuela to export up to $2 billion worth of crude oil to the United States, U.S. President Donald Trump announced on Tuesday. The agreement aims to divert oil supplies from China while helping Venezuela avoid deeper production cuts.
Trump said the deal signals Venezuela’s willingness to open its oil industry to U.S. companies. The President also claimed the money from the oil sales would be controlled by him to “benefit the people of Venezuela and the United States.”
Venezuelan crude blocked in storage since mid-December due to U.S. sanctions will now be released. Trump said between 30 and 50 million barrels of sanctioned oil will be transferred to the U.S., managed under the oversight of U.S. Energy Secretary Chris Wright. The oil will be taken directly from ships to U.S. ports.
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The move may initially redirect cargoes that were previously bound for China, Venezuela’s top buyer over the last decade. U.S. sanctions since 2020 have restricted PDVSA, Venezuela’s state oil company, from the global financial system.
Chevron, Venezuela’s main U.S. partner, currently controls oil flows under a U.S. license, exporting 100,000 to 150,000 barrels per day. Talks are ongoing about auctions and licenses for other U.S. buyers to access Venezuelan cargoes.
U.S. officials say increased Venezuelan oil flows would support Gulf Coast refineries, boost jobs, and stabilize gasoline prices. Interior Secretary Doug Burgum said U.S. partnerships and technology could help rebuild Venezuela’s economy.
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Venezuelan production has already fallen due to the embargo, and without exports, storage shortages would force further cuts. Oil traders have reacted to the deal talks, with U.S. Gulf heavy oil differentials dropping about 50 cents per barrel on Tuesday.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
