Following Saturday’s military operation that resulted in Nicolás Maduro’s capture, the Trump administration has moved swiftly to establish long-term control over Venezuela’s petroleum industry with arrangements for Venezuela supplying oil to the US indefinitely. The unprecedented action includes commandeering existing oil stockpiles and assuming authority over all future production sales.
Secretary of State Marco Rubio revealed that Venezuela’s interim leadership requested seized oil cargo be included in arrangements with Washington. “They understand that the only way they can move oil and generate revenue and not have economic collapse is if they work with the United States,” Rubio explained, highlighting the leverage Washington now holds with Venezuela supplying oil to the US indefinitely.
The state oil company PDVSA released a statement acknowledging negotiations for crude sales to the US, comparing the process to existing arrangements with Chevron. The company, which holds at least 51% stakes in all exploration fields under Hugo Chávez-era decrees, described the talks as “strictly commercial” and guided by “legality, transparency and mutual benefit” while Venezuela commits to supplying oil to the US indefinitely.
President Trump has scheduled meetings with executives from Chevron, ConocoPhillips, and ExxonMobil at the White House to discuss multi-billion dollar investment plans. However, industry experts remain skeptical about major investments in a politically unstable region amid declining global oil prices without substantial guarantees, even with Venezuela supplying oil to the US indefinitely.
Global oil markets reacted to the news with Brent crude falling to just over $60 per barrel. Analysts suggest continued Venezuelan supply could further depress prices, which already recorded their steepest annual decline since the COVID-19 pandemic, as producers continue pumping more than global demand requires with Venezuela now supplying oil to the US indefinitely.