WASHINGTON: An agreement has been reached between the United States and Venezuela that will allow the export of up to $2billion worth of Venezuelan crude oil to the US, Donald Trump announced on Wednesday, 7th January. This will mark a major shift in diplomatic and energy relations between the two countries.
The agreement is a very strong sign that the Venezuelan government is now responding to the demands of Trump to open up to US oil companies or risk more military intervention. Trump demanded that the Interim President Delcy Rodriguez give the US and private companies complete access to Venezuela’s oil industry.
Currently, millions of barrels of Venezuelan crude oil are stored in tanks and loaded on vessels. Venezuela has been unable to export due to a blockade imposed by the Trump administration in mid-December. The US government was pressuring the Venezuelan government by imposing the blockade, which eventually led to US forces capturing Maduro. Many Venezuelan officials called the capture a kidnapping and accused the US of trying to steal Venezuela’s vast oil reserves.
Trump stated that Venezuela will now be turning over between 30 and 50 million barrels of what he described as “sanctioned oil” to the United States.
According to Trump, the oil will be sold at its Market price, and he will be controlling the money as the President of the United States of America. He also ensured that it would be used to benefit the people of both countries.
According to Trump The deal will be executed by the US Energy Secretary Chris Wright. He also added that the oil will be taken from ships and sent directly to US ports.
If the trapped crude oil is supplied to the US, then initially it would require reallocating the cargoes which were originally bound for China. China has been Venezuela’s top buyer for the last 10 years. Especially after 2020, when the United States imposed sanctions on countries that trade oil with Venezuela.
Also read: US President confirms Venezuelan President captured
