The United States has announced plans to maintain indefinite control over sanctioned Venezuelan oil sales as Washington prepares to ease restrictions on the South American nation’s crude exports to global markets. The White House confirmed the arrangement, which marks a significant development in the complex relationship between the two countries.
Initial sales are anticipated to commence with between 30 million and 50 million barrels of oil, with revenues to be managed directly by the US government. Energy Secretary Chris Wright stated that this financial control was essential to maintaining leverage over the Venezuelan administration.
The sale of these volumes is expected to generate approximately 2.8 billion dollars, though it remains unclear what proportion of these proceeds will ultimately be allocated to Venezuela. Whilst White House Press Secretary Karoline Leavitt characterised the arrangement as a concluded agreement, Venezuela’s state-owned oil company PDVSA released a statement suggesting that negotiations regarding oil sales were continuing within the established bilateral framework.
President Donald Trump disclosed via social media that Venezuela would transfer up to 50 million barrels of oil to the United States, to be sold at prevailing market rates. The administration has indicated that resulting funds will be deposited into US-controlled accounts, which the President stated he would oversee and direct towards benefiting both Venezuelan and American citizens.
White House officials confirmed that marketing efforts for the oil have already commenced, with the administration coordinating with major banking institutions and commodity trading firms to facilitate the transactions. The plan includes a selective relaxation of sanctions that have constrained Venezuelan crude sales for several decades.
Wright emphasised at a Miami energy conference that the objective was to enable oil flow whilst ensuring funds “flow back into Venezuela”. He subsequently clarified on CNBC that the administration was not engaged in resource appropriation and that economic stabilisation of Venezuela represented the primary allocation priority for these funds.
Secretary of State Marco Rubio articulated the strategy’s aim as ensuring disbursements benefit the Venezuelan population rather than supporting corruption or the existing regime, thereby maintaining substantial leverage for stabilisation initiatives.
The proposal has attracted immediate criticism from Democratic lawmakers. Senator Chris Murphy of Connecticut described the plan as “insane”, characterising it as the indefinite appropriation of Venezuelan oil resources under duress to facilitate micromanagement of the country’s affairs.
Venezuela possesses some of the world’s most substantial proven oil reserves, yet decades of underinvestment, operational mismanagement and US sanctions have reduced output to approximately one million barrels daily, representing less than one per cent of global production. This supply, which has provided vital revenue to the Venezuelan government, has predominantly been directed to China in recent years. However, this trade has faced disruption following intensified US enforcement actions and a blockade of Venezuelan tankers as part of Washington’s pressure campaign against President Maduro.
Beijing’s foreign minister condemned both the detention of Maduro and US intentions to control Venezuelan oil assets. President Trump is scheduled to meet with oil industry executives at the White House this week.
Market observers suggest that in the near term, US oil major Chevron and American refineries configured to process the heavy crude characteristic of Venezuelan output are well positioned to benefit from increased flows. Chevron remains the sole major US oil company maintaining operations in Venezuela, though several European firms retain limited presences there.
The potential redirection of Venezuelan crude to the United States could create competitive pressures for Mexico and Canada, which produce similar grades and currently serve as principal suppliers to US refineries. Oil prices, already subdued due to stable supply and tempered demand forecasts, declined further over recent days on speculation regarding Venezuela’s potentially enhanced market access.
Industry analysts caution that substantial expansion of Venezuelan production capacity will require years of development and billions of dollars in capital investment. Given more attractive risk-adjusted opportunities in the United States and alternative jurisdictions such as Guyana, firms may demonstrate reluctance to commit significant resources to Venezuelan projects.
