US President Donald Trump announced on Wednesday that Venezuelan interim authorities will hand over 30 to 50 million barrels of “high quality, restricted” oil to the United States. This announcement comes days after the US military invaded Caracas and arrested President Nicolas Maduro.
In a post on his social media platform ‘Truth Social’, Trump said the oil market price would be sold and the proceeds would be “under my control as President of the United States” to ensure that the money is used for the benefit of both Venezuelans and Americans.
Trump wrote that I am pleased to announce that Venezuela’s interim authorities will hand over 30 to 50 million barrels of high-quality, restricted oil to the United States. He further said that he has instructed Energy Secretary Chris Wright to implement this plan “immediately”.
He said the oil would be loaded onto storage ships and brought directly to US unloading docks. Trump further said that this oil will be sold at market price, and that money will be controlled by me, as President of the United States, to ensure that it is used for the benefit of the people of Venezuela and the United States.
White House will talk to American oil companies
The White House is now reaching out to American energy companies to pressure Venezuela to open its oil sector more widely to American investment and expertise. According to a report by the Associated Press, a meeting has been scheduled for Friday with senior executives of major US oil producing companies to discuss Venezuela’s energy future.
According to AP report, the price of oil is around $56 per barrel, so the quantity decided by Trump could be up to $2.8 billion. By comparison, according to the Energy Information Administration, the United States consumes about 20 million barrels of oil and petroleum products per day, meaning the transfer to Venezuela would be equivalent to about two and a half days of the US supply.
Despite having the world’s largest crude oil reserves, Venezuela currently produces only about 1 million barrels per day, significantly less than the US average daily production of about 14 million barrels.
Tension increased after Maduro’s arrest
Trump’s announcement comes after a dramatic US military operation over the weekend that resulted in Venezuelan President Nicolas Maduro being arrested and extradited to the United States to face federal drug trafficking charges.
Venezuelan officials said at least 24 security officers were killed in the overnight operation, while the country’s Attorney General Tarek William Saab said “dozens” of officers and civilians were killed overall and described the attack as a “war crime.”
Cuba has also confirmed that 32 Cuban military and police personnel deployed in Venezuela were killed during this operation. The Pentagon said seven US soldiers were injured by bullets and shrapnel, five of whom have already returned to duty.
Venezuela’s acting President Delsey Rodriguez strongly opposed Trump’s warnings that she could face serious consequences if she did not align the country with American interests. Rodriguez said in a public address that personally, to those who bully me: My destiny is not determined by them, but by God.
Trump defended the campaign against Democratic criticism, saying Maduro was charged in the US in 2020 with drug-related terrorism charges and previous governments had also called for his arrest. Trump said he had been pursuing the man for years, and claimed that Democrats were not giving him credit for his successful campaign.
Will petrol and diesel become cheaper?
Now when about 50 million barrels of Venezuelan crude oil will come into the market, will fuel prices come down? This is the biggest question that has arisen. After this announcement by Trump, there is a decline in the prices of crude oil in the international market. American crude oil is trading at $ 56.45 per barrel, down by more than one percent. On the other hand, the price of Brent crude oil of Gulf countries is trading at $ 60.18 per barrel with a decline of 0.86 percent. According to a recent SBI Research report, the price of crude oil may reach $50 per barrel by June. In such a situation, we may see a decline in the prices of petrol and diesel in India.