US takes control of Venezuelan oil stockpiles

The Trump administration announced plans to seize between 30 and 50 million barrels of sanctioned Venezuelan oil, redirecting shipments originally bound for China to US ports for immediate sale at market prices.

US President Donald Trump announced early Wednesday on Truth Social that Venezuelan interim authorities will transfer between 30 and 50 million barrels of sanctioned oil to the United States.

The oil is being shipped directly to US ports and will be sold at market prices. Energy Secretary Chris Wright will implement the plan immediately. Trump stated that he personally controls the funds.

The purpose is to ensure the proceeds are used “for the benefit of the people of Venezuela and the United States,” according to the US administration.

The volumes represent approximately two months of Venezuelan production. The value is estimated at $1.8 to $3 billion. However, the Venezuelan interim government has not commented on the claim.

Blockade creates stockpiles

Venezuela now has millions of barrels of oil stored in tanks and loaded on tankers. This is due to the total blockade Trump imposed on sanctioned vessels in mid-December.

Additionally, approximately 80 percent of Venezuelan oil has been exported to China in recent years.

According to Reuters sources within the oil industry, Trump wants to present rapid deliveries as a major victory. Therefore, oil originally destined for China is likely being redirected to the US.

Unclear if Venezuela receives payment

It remains unclear whether Venezuela will have direct access to the oil revenues. Meanwhile, approximately 17 percent of Venezuelan oil has recently gone to the US through a Chevron license.

The White House is holding a meeting Friday with executives from America’s largest oil companies. The subject: Venezuelan oil. The Trump administration wants to open Venezuelan oil fields to American investment.

Analysts have previously been skeptical that the plans will affect global oil supply. Oil companies also want to see a stable government in place before making major commitments. Furthermore, any investments would not yield results for several years.