Venezuela, US Agree Export Deal for Millions of Barrels

Islamabad-(Special Correspondent /Web Desk)-U.S. President Donald Trump announced that Caracas and Washington have reached an agreement for Venezuela to export up to $2 billion worth of crude oil to the United States, a move expected to redirect shipments previously bound for China and help stem further cuts to Venezuelan output. Under the deal, Venezuela’s interim authorities will supply between 30 million and 50 million barrels of sanctioned crude, which the U.S. will sell at market prices with proceeds overseen by the U.S. government. The agreement is seen as a response to Trump’s demand that Venezuela open its oil sector to U.S. companies, and U.S. refiners along the Gulf Coast are expected to benefit from the increased supply. Oil futures fell as markets reacted to the anticipated flow of Venezuelan barrels.

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Venezuela has millions of barrels of oil loaded on tankers and in storage tanks that it has been unable to ship due to a blockade on exports imposed by Trump since mid-December.

The blockade was part of rising US pressure on the government of Venezuelan President Nicolas Maduro that culminated in US forces capturing him this weekend. Top Venezuelan officials have called Maduro’s capture a kidnapping and accused the US of trying to steal the country’s vast oil reserves.

U.S. President Donald Trump said Venezuela will hand over 30 to 50 million barrels of oil currently under sanctions to the United States, with the crude to be unloaded from ships and delivered straight to American ports. Trump said the oil would be sold at prevailing market prices and that he would personally oversee how the revenue is managed, claiming the funds would be used in the interests of both countries. He named Energy Secretary Chris Wright as the official responsible for putting the agreement into action.

To meet the supply, Venezuela may redirect shipments that were originally heading to China, its biggest oil customer over the past decade, especially since U.S. sanctions tightened in 2020. An industry source said Trump wants the deal completed quickly so he can present it as a major political success. Venezuelan officials and state oil firm PDVSA declined to comment.

Following Trump’s announcement, U.S. oil prices dropped more than 1.5%, reflecting expectations of higher crude supply. Exports of Venezuelan oil to the U.S. are currently handled solely by Chevron, PDVSA’s main joint-venture partner, which has been shipping roughly 100,000 to 150,000 barrels per day under a special U.S. license and remains the only company exporting crude from Venezuela without disruption in recent weeks.

It was not immediately clear if Venezuela would have any access to proceeds from the supply. Sanctions mean PDVSA is excluded from the global financial system, its bank accounts are frozen, and it is blocked from executing transactions in US dollars.

🚨 President Donald J. Trump announces Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America. pic.twitter.com/08qI7MvCpk

— The White House (@WhiteHouse) January 7, 2026

Venezuela has been selling its flagship crude grade, Merey, at around $22 per barrel below Brent for delivery at Venezuelan ports, giving a value for the deal at up to $1.9 billion.

Rodriguez, sworn in as interim president on Monday, is herself under US sanctions imposed in 2018 for undermining democracy.

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Venezuelan and US officials this week discussed possible sales mechanisms, including auctions to allow interested US buyers to bid for cargoes, and issuing US licenses to PDVSA’s business partners that could lead to supply contracts, two sources told Reuters.

Those licenses have in the past allowed PDVSA’s joint venture partners and customers, including Chevron, India’s Reliance, China National Petroleum Corporation (CNPC), and European Eni and Repsol, to have access to Venezuelan oil to refine or to resell to third parties.

This week, some of those companies have begun making preparations for receiving Venezuelan cargoes again, two separate sources said.

The US and Venezuela have also discussed whether Venezuelan oil can be used in the US Strategic Petroleum Reserve in the future, one of the sources said. Trump did not refer to this possibility.

Increased oil flows would be ‘great news’

US Interior Secretary Doug Burgum said on Tuesday that an increased flow of Venezuelan heavy oil to the US Gulf would be “great news” for job security, future gasoline prices in the US and for Venezuela.

“Venezuela has an opportunity now to actually have capital come in and rebuild their economy and take advantage,” he told Fox News, when asked about talks between the governments on oil exports. “With American technology, American partnership, Venezuela can be transformed.”

US refineries on the Gulf Coast can process Venezuela’s heavy crude grades and were importing some 500,000 barrels per day (bpd) before Washington first imposed energy sanctions on Venezuela.

PDVSA has already had to cut production due to the embargo, because it is running out of storage for the oil. Without a way to export oil soon, it would have to cut production more, one of the sources said.

Oil traders reacted to news of the deal talks on Tuesday. Differentials for some heavy oil grades in the US Gulf slipped around 50 cents per barrel on Tuesday on the prospect of more Venezuelan supplies.