Trump Says Venezuela Will Send Up to 50 Million Barrels of Oil to the US
President Donald Trump said Venezuela will send up to 50 million barrels of oil to the US, stating that the oil will be sold and the proceeds will benefit both countries.
“I am pleased to announce that the Interim Authorities in Venezuela will deliver between 30 and 50 MILLION Barrels of High-Quality, Sanctioned Oil to the United States,” Trump wrote in a social media post.
“This oil will be sold at Market Price, and the money will be controlled by me, as President of the United States, to ensure it is used for the benefit of the people of Venezuela and the United States!” Trump added.
Representatives for the Department of Energy and the White House did not immediately respond to requests for further details. At current production rates before the US blockade, that volume would represent approximately 30 to 50 days of Venezuelan oil production. The US alone produces about 13.8 million barrels per day.
At current prices for the US benchmark, West Texas Intermediate, that volume could be worth more than $2.8 billion.
Trump said the sanctioned oil “will be transported by storage vessels, and brought directly to loading docks in the United States.” In the post, the president said he had tasked Energy Secretary Chris Wright with implementing the plan “immediately.”
While Trump’s oil transfers appear to focus on new and existing production, Trump also touted Venezuela’s vast oil potential. The country is blessed with vast oil reserves, but production has declined from its 1970s peak after decades of deterioration and the exodus of several U.S. oil companies. (asd)
Source: Bloomberg.com
