The United States will extend its control over Venezuelan oil sales indefinitely, according to White House sources, expanding well beyond the initial agreement announced earlier this week by President Donald Trump.
The development follows the American military operation in Caracas that resulted in the capture of former Venezuelan President Nicolás Maduro. Trump initially announced that Venezuela would transfer between 30 million and 50 million barrels of crude oil to American control, representing approximately $3 billion worth of Venezuelan crude currently held in tankers and storage facilities.
The expanded arrangement now removes certain sanctions on Venezuela to permit ongoing oil sales under American supervision. This marks a significant shift in the bilateral relationship between the two nations and carries substantial implications for global energy markets.
Energy Secretary Chris Wright, whom President Trump designated to execute the agreement, addressed the administration’s strategy at a Goldman Sachs energy conference in Miami. Wright explained that controlling both the oil flow and resulting revenue provides the United States with considerable leverage to drive economic reforms in Venezuela.
“If we control the flow of oil and the flow of the cash that comes from those sales, we have large leverage,” Wright stated. “We need control of those oil sales to drive the changes that simply must happen.”
The President has requested that Venezuela’s interim president, Delcy Rodríguez, grant the United States and private companies complete access to Venezuela’s oil industry. In a statement on his Truth Social platform, Trump emphasized his personal oversight of the proceeds, noting that the oil “will be taken by storage ships, and brought directly to unloading docks in the United States.”
Global oil markets responded to the news with price declines on Wednesday, though some recovery occurred during morning trading in New York. Brent crude, the international benchmark, fell to just over $60 per barrel, while the United States oil price decreased by nearly one percent to $56.72 per barrel after briefly dropping below $56.
The arrangement could exert downward pressure on oil prices, which last year experienced their steepest annual decline since the pandemic. An already oversupplied global market faces the prospect of additional Venezuelan crude as producers continue pumping more than the global economy requires.
The agreement also introduces complications for Venezuela’s existing trade relationships, particularly with China, which currently purchases approximately 80 percent of Venezuelan crude exports. Beijing may face higher prices for its crude oil and increased pressure in its relationship with Washington.
China’s foreign ministry responded sharply to the developments, asserting that Venezuela “enjoys full and permanent sovereignty over its natural resources and economic activities.” The ministry characterized American demands as violations of international law that infringe upon Venezuelan sovereignty and harm the Venezuelan people’s rights.
The Trump administration has indicated its intention to use proceeds from Venezuelan oil sales to rebuild the country’s economy, though specific details regarding the allocation of funds remain unclear. The arrangement represents an unprecedented level of American involvement in another nation’s natural resource sector and raises questions about the long-term implications for international trade and sovereignty principles.
As this situation continues to develop, the global community watches closely to see how this arrangement affects energy markets, international relations, and the precedent it may establish for future American foreign policy initiatives.
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