US President announced Tuesday evening that Venezuela's interim government will transfer millions of barrels of oil to the US, with the proceeds from the sale to be controlled by Washington.
Trump announced on social media that Caracas will transfer "between 30 and 50 MILLION barrels of high-quality, sanctioned oil" to the United States.
"This oil will be sold at market price, and this money will be controlled by me, as President of the United States of America, to ensure it is used for the benefit of the people of Venezuela and the United States," Trump stated, adding that he had instructed Energy Secretary Chris Wright to immediately implement the plan.
Such a deal could potentially divert Venezuelan oil supplies from China and allow the country's state-owned company, PDVSA, to avoid deeper production cuts. Reports this week indicated that Washington and Caracas were negotiating a supply agreement. Trump's statement came just days after US forces captured Venezuelan President Nicolás Maduro, sparking heightened political uncertainty in the Latin American country.
Maduro's Vice President, Delcy Rodríguez, was sworn in as interim president this week. Delcy, considered by US intelligence to be the most suitable to replace Maduro, has indicated she will cooperate with Washington.
Trump stated that the US will control Venezuela until a new, permanent leader is elected, and that Washington will also take control of the country's aging oil industry.
Oil prices fell following Trump's statement, as US control of Venezuela could lead to the release of large volumes of crude oil onto the market, increasing supply. Brent crude futures for March fell 2%.