Trump says he will receive up to 50 million barrels of oil from Venezuela, and WTI crude oil fell more than 2% in response

The Zhitong Finance App learned that US President Donald Trump said that Venezuela will hand over up to 50 million barrels of oil to the US, adding that the oil will be sold at market prices, and the proceeds will benefit both countries.

“I am happy to announce that the Venezuelan Interim Authority will hand over 30 to 50 million barrels of sanctioned high-quality oil to the United States of America,” Trump said in a social media post. This oil will be sold at market price, and the proceeds will be overseen by me as President of the United States to ensure that it is used to benefit the people of Venezuela and the United States!”

WTI crude oil fell as much as 2.4% after Trump's remarks.

If Trump's statement is true, this amount of oil is equivalent to Venezuela's production in about 30 to 50 days before the US imposed a partial blockade against the Commission — far below historical levels. Based on current WTI prices, the value of this batch of crude oil can reach up to 2.8 billion US dollars.

US Department of Energy and White House representatives did not immediately respond to requests for comment. Venezuela's Ministry of Information and Ministry of Petroleum also did not respond to requests for comment.

Venezuela has the world's largest proven reserves of crude oil, but its production has declined sharply due to long-term neglect and the withdrawal of many foreign oil companies. The country currently accounts for less than 1% of the world's oil supply. Analysts say it will take years and billions of dollars of investment to significantly restore production.

Since the US began imposing a blockade last month, Venezuela has indeed accumulated a large backlog of untransported oil, stored in oil storage tanks and leased ships. According to data from shipping intelligence company Kpler, CNPC has stored millions of barrels of oil and may run out of backup storage space within the next few weeks.

“Even the overvaluation of 50 million barrels may seem significant at the political level, but the impact is limited at the economic level,” said Harish Kurshid, Karobaar Capital LP chief investment officer. This is a one-time flow, not a structural shift in supply.”

Trump said in his statement that the sanctioned oil “will be picked up by oil storage vessels and transported directly to the US unloading dock.” He said he had instructed Energy Secretary Chris Wright to implement the plan “immediately”.

It's unclear which companies will handle this batch of oil and whether Chevron will be responsible for it. As the only US company that still produces and exports oil in Venezuela exempted from US sanctions, Chevron has a special position in the country.

A Chevron representative did not immediately respond to a request for comment.

According to reports, the Trump administration has told Venezuela's interim leader Delcy Rodriguez that his administration must exclusively cooperate with the US to produce oil and prioritize the US when selling heavy crude oil.

Three people familiar with the matter revealed that the US is also demanding that Venezuela reduce economic ties with China, Russia, Iran, and Cuba. If implemented, it would mean a complete political shift in Venezuela. In recent years, the country has relied heavily on these four countries for economic and security stability.