The United States and Venezuela have signed an agreement allowing the export of about $2 billion worth of Venezuelan crude oil to the US, a move Washington described as a significant breakthrough in talks between the two countries amid Venezuela’s worsening political and economic crisis.
US President Donald Trump announced the deal, describing it as a major negotiation that could redirect Venezuelan oil shipments away from China while easing pressure on the South American country’s oil sector, which has been hit by export restrictions and storage shortages.
The agreement marks a notable shift in relations between Washington and Caracas following months of heightened US pressure. Trump said the deal reflects Venezuela’s compliance with his administration’s demand that the country open its oil industry to US companies, according to Reuters.
Trump has previously warned of possible military action if those conditions were not met, insisting on what he called “total access” for American and private firms to Venezuela’s vast oil resources.
Venezuela has millions of barrels of crude loaded on tankers or held in storage but has been unable to export them due to a US blockade imposed in mid-December. The export ban was part of escalating pressure on President Nicolás Maduro’s government, which culminated in Maduro’s capture by US forces over the weekend — a move Venezuelan officials have condemned as a kidnapping aimed at seizing control of the country’s oil wealth.
In a social media post, Trump said Venezuela would hand over between 30 million and 50 million barrels of what he termed “sanctioned oil” to the United States. He added that the oil would be sold at market prices, with proceeds overseen by the US government to ensure benefits for both countries.
US Energy Secretary Chris Wright is expected to supervise the deal’s implementation, with crude taken directly from tankers and shipped to US ports. Sources familiar with the talks said some cargoes initially bound for China would be redirected to the US, potentially ending years in which Beijing was Venezuela’s largest oil buyer following US sanctions imposed in 2020.
Oil market reactions were swift, with US crude prices falling by more than 1.5 per cent after the announcement, as traders anticipated increased Venezuelan supply.
At present, all Venezuelan crude shipments to the US are handled by Chevron under a special US licence. The company has been exporting between 100,000 and 150,000 barrels per day and remains the only firm shipping Venezuelan oil uninterrupted despite the blockade.
It remains unclear whether Venezuela will gain direct access to sales proceeds, as US sanctions have largely cut state oil company PDVSA off from the global financial system, freezing its accounts and restricting dollar transactions.
Market estimates put the value of the deal at up to $1.9 billion, with Venezuela’s flagship Merey crude trading at around $22 per barrel below Brent prices. Interim President Delcy Rodríguez, sworn in on Monday, is also under US sanctions imposed in 2018.
Sources said both sides are discussing sales mechanisms, including auctions for US buyers and licences for PDVSA partners — a system previously used by firms such as Chevron, Reliance Industries, China National Petroleum Corporation, Eni and Repsol.
US officials have also raised the possibility of Venezuelan crude being added to the US Strategic Petroleum Reserve, though Trump did not directly address that option.
US Interior Secretary Doug Burgum said increased supplies of Venezuelan heavy crude to Gulf Coast refineries would be beneficial for jobs, fuel prices and Venezuela’s economy, noting that the region’s refineries are well suited to process the oil.
Before US energy sanctions were imposed, Gulf Coast refineries imported about 500,000 barrels per day of Venezuelan crude. PDVSA has since been forced to cut output due to storage constraints, and industry sources warn that without sustained export routes, further production cuts may follow.
