US President Donald Trump has announced the transfer of a large amount of oil held back by US sanctions on Venezuela to the United States. He claims that Venezuela will hand over 30 to 50 million barrels of sanctioned oil to the United States, which will be sold at market prices and the proceeds will be spent on the interests of the people of the United States and Venezuela.
In a post on the social media platform Truth Social on Tuesday, Trump said that he has ordered the immediate import of this long-held oil into the United States. US Energy Secretary Chris Wright has been tasked with implementing the matter. According to the plan, the oil will be delivered directly to the US unloading dock on storage ships.
Analysts see the announcement as part of the Trump administration’s tough stance on Venezuela. Trump has previously spoken of “recovering” Venezuela’s oil resources and revitalizing the country’s energy sector. However, the legal basis of the announcement has been questioned because the United States has no ownership of Venezuelan oil under international law.
According to energy experts, the impact of the 30-50 million barrels of oil supply may be limited as the daily oil consumption in the global market is more than 100 million barrels. They opined that it is also difficult to determine its actual impact if the delivery timeframe is not clear. At the same time, there is uncertainty about the control and management of the money from oil sales.
Analysts believe that despite having the world’s largest proven oil reserves, Venezuela’s production now accounts for less than 1 percent of the global market due to long-standing sanctions, mismanagement and corruption. In this context, some see Trump’s announcement as a political message, while others see it as a sign of new uncertainty in the energy market.