• Source:JND

US President Donald Trump, on Tuesday, announced on social media that "Interim Authorities" in Venezuela reached a deal with America where Caracas would be providing 30 million to 50 million barrels of "High Quality" oil to the US at its market price. The amount of oil converts to roughly USD 2 billion. The latest deal is a flagship negotiation that would divert supplies from China while helping Venezuela avoid deeper oil production cuts.

The announcement came days after Trump illegally captured Venezuelan President Nicolas Maduro in a surprise raid when he was sleeping with his wife at the Presidential Palace in Caracas.

On Tuesday, officials in Caracas announced that at least 24 Venezuelan security officers were killed in the dead-of-night US military operation.

ALSO READ: ‘I Am Decent Man, President Of My Country’: Venezuela's Maduro Pleads Not Guilty In US Court, Rejects Charges

Who will control the oil prices?

Trump posted on Truth Social that the oil "will be taken by storage ships, and brought directly to unloading docks in the United States." He said the money would be controlled by him as president, but it would be used to benefit the people of Venezuela and the United States.

"This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!," Trump posted on his social media platform, The Truth Social.

What it means for Venezuela and the Whole World?

1. Has the Venezuelan government knelt down before Trump? The agreement is a strong sign that the Venezuelan government is responding to Trump's demand that they open up to US oil companies or risk more military intervention. Trump has said he wants interim President Delcy Rodriguez to give the US and private companies "total access" to Venezuela's oil industry.

2. Impact on global oil markets – While 30 to 50 million barrels is relatively small compared with global consumption, redirecting this oil could ease some supply tightness and affect short-term price sentiment.

3. Shift in geopolitical dynamics- This could strain ties with China, Russia and other nations that have supported Venezuela.

ALSO READ: What Was Operation 'Absolute Resolve'? Inside Five Hours US Mission That Tracked, Cornered And Captured Venezuela’s President

4. Implications for energy security- Countries that previously imported Venezuelan crude (like China and India) might face supply adjustments or seek alternate sources if more oil is directed to the US market.

5. US domestic economic and political angle– Trump says the oil will be sold at market prices, with proceeds controlled by the US administration to “benefit” both nations, which could influence domestic energy policy debates.

(With inputs from agencies)


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