Venezuela is supplying 30–50 million barrels of oil to the United States

Venezuela has reached a landmark agreement with the United States to export crude oil worth approximately $2 billion, equivalent to 200 million dollars, directly to American markets. The announcement was confirmed on Tuesday by US President Donald Trump, signalling a significant shift in Caracas’s energy strategy.

Under this deal, Venezuela’s oil shipments, previously destined for China, will now be redirected to the United States. The move allows Venezuela to avert substantial reductions in oil production, providing a lifeline to the country’s beleaguered energy sector.

The agreement also reflects the interim Venezuelan government’s willingness to comply with Trump’s demands. The US president had insisted that either Venezuela grant American oil companies full access to its energy market or face the risk of military intervention. Trump reiterated his position, urging interim President Delcy Rodríguez to allow US and private firms “full entry” into Venezuela’s oil industry.

Since mid-December, US-imposed sanctions had left millions of barrels of Venezuelan crude trapped in storage tanks and aboard tankers, unable to be shipped. The sanctions were part of increasing pressure on President Nicolás Maduro’s administration. Tensions peaked last Saturday when US special forces reportedly attempted to remove Maduro, an act described by Venezuelan officials as a “kidnapping” and an attempt to seize the country’s vast oil resources.

According to President Trump, Venezuela will supply 3 to 5 million barrels of crude oil directly to the United States. He emphasised that the oil will be sold at market prices, with the proceeds controlled by the US presidency to ensure that the revenue benefits both Venezuelans and Americans.

US Secretary of Energy Chris Wright has been tasked with overseeing the implementation of the agreement, which includes direct shipment of oil from Venezuelan tankers to American ports. Reuters sources have indicated that some of the oil originally destined for China may need to be reallocated to meet this new arrangement. Over the past decade, China has been Venezuela’s largest oil customer, particularly after US sanctions intensified in 2020.

Chevron, as the principal US partner of Venezuela’s state-owned oil company PDVSA, is managing the exports under American oversight. The company currently exports between 100,000 and 150,000 barrels of crude daily to the United States, remaining the only company to continue uninterrupted oil extraction and shipment despite recent sanctions.

The announcement triggered a decline of over 1.5% in US crude oil prices. While the Venezuelan government and PDVSA have not officially commented, analysts predict that the agreement could further increase Venezuela’s oil exports to the US. However, it remains unclear whether Venezuela will immediately receive the proceeds, as PDVSA continues to face restrictions under US sanctions and its bank accounts remain frozen.

Projected Venezuelan Oil Exports to the US

This agreement marks a pivotal moment in US–Venezuela energy relations, potentially reshaping the regional oil market while highlighting the geopolitical tensions surrounding Caracas’s oil sector.