US to Dominate Venezuela Oil Sales Indefinitely, Official Confirms

The White House has announced a significant shift in U.S. policy regarding Venezuelan oil sales. The U.S. intends to maintain indefinite control over the sales of sanctioned oil from Venezuela as it prepares to ease restrictions on the nation’s crude production in global markets.

New U.S. Strategy on Venezuelan Oil Sales

The U.S. government plans to initiate sales of between 30 million to 50 million barrels of Venezuelan oil. This move is aimed at managing revenues to ensure continued leverage over the Venezuelan government. Energy Secretary Chris Wright emphasized the goal is to allow Venezuelan oil to flow while preserving U.S. control.

Projected Revenue and Control Mechanisms

• The U.S. expects the sales to generate around $2.8 billion.
• Revenue from these oil sales will be deposited into U.S.-controlled accounts.
• Some funds are expected to return to Venezuela to benefit its citizens.

Wright stated, “We need to have that leverage and control of those oil sales to drive the changes that must happen in Venezuela.”

Targeting Sanctions and Political Reactions

As part of this strategy, the U.S. is preparing to selectively roll back American sanctions that have limited Venezuelan crude exports for years. President Donald Trump hinted at this change, suggesting Venezuela would “turn over” significant amounts of oil to the U.S. at market value.

U.S. Secretary of State Marco Rubio expressed that the intent is to ensure the funds are distributed in ways that benefit the Venezuelan populace rather than the current regime.

Criticism from Political Opponents

The proposed policy has faced opposition from Democratic lawmakers. Senator Chris Murphy called the plan “insane,” criticizing it as an attempt to control Venezuelan oil resources for political leverage.

Current State of Venezuelan Oil Production

Despite having some of the world’s largest proven oil reserves, Venezuela’s production has dwindled to approximately one million barrels per day, contributing to less than 1% of global production. Factors such as mismanagement and U.S. sanctions have severely impacted output.

Impact on Global Oil Market

• Most Venezuelan oil exports have shifted towards China, but this has recently faced disruptions.
• The redirection of Venezuelan oil to the U.S. may create pressure on Canada and Mexico, which supply similar grades of crude.

Industry analysts note that while increased Venezuelan oil flow could pressure prices, true expansion in production will require substantial investment and time. Many firms may prefer less risky opportunities outside of Venezuela.

As discussions continue, Trump is scheduled to meet with oil executives to outline further details on this evolving oil sales strategy.