The United States and Venezuela have signed an agreement permitting the export of $2 billion worth of Venezuelan crude oil to the US, President Donald Trump has announced.
US officials said the deal represents a major breakthrough in negotiations between both countries at a time of deepening political and economic crisis in Venezuela.
Trump described the agreement as a flagship negotiation, noting that it would redirect Venezuelan oil supplies away from China while easing production cuts caused by export restrictions and storage limitations.
The deal also signals a significant shift in US–Venezuela relations following months of heightened pressure by Washington on the government of President Nicolás Maduro, who is currently facing trial in the United States.
According to Trump, the agreement followed Venezuela’s compliance with US demands to open its oil sector to American companies. He had previously warned of further military action if those conditions were not met.
Venezuela currently has millions of barrels of crude loaded on tankers and held in storage after a US export blockade imposed in mid-December prevented shipments. The restriction formed part of escalating pressure that culminated in the capture of Maduro by US forces over the weekend — a move Venezuelan officials have condemned as an act of abduction.
In a social media post, Trump said Venezuela would “turn over” between 30 million and 50 million barrels of what he described as “sanctioned oil” to the United States. He said the crude would be sold at market prices, with proceeds controlled by the US government to benefit both countries.
Trump added that US Energy Secretary Chris Wright would oversee the execution of the agreement, with oil taken directly from tankers and shipped to US ports.
Sources familiar with the talks said cargoes originally bound for China would now be redirected to the US, marking a shift from years in which Beijing had been Venezuela’s largest crude buyer following US sanctions imposed in 2020.
An industry source said the White House is keen on swift implementation to showcase the agreement as a major political and economic achievement.
Following the announcement, US crude prices fell by more than 1.5 percent, reflecting expectations of increased Venezuelan oil supply entering the market.
Currently, Venezuelan crude exports to the US are handled exclusively by Chevron, PDVSA’s main joint venture partner, under a special US authorization. Chevron has continued exporting between 100,000 and 150,000 barrels per day despite the recent blockade.
It remains unclear whether Venezuela will have direct access to proceeds from the oil sales, as US sanctions have largely cut off state oil firm PDVSA from the global financial system.
Market estimates place the value of the agreement at up to $1.9 billion, with Venezuela’s flagship Merey crude trading at a steep discount to Brent prices.
Interim President Delcy Rodríguez, sworn in earlier this week, remains under US sanctions imposed in 2018 over allegations of undermining democratic processes.
Sources said both sides have discussed possible sales mechanisms, including auctions for US buyers and the issuance of special licenses to PDVSA partners. Similar licenses in the past allowed companies such as Chevron, Eni, Repsol, Reliance and CNPC to access Venezuelan crude.
Some of these firms are already preparing to resume shipments, according to sources.
Discussions have also included the possible use of Venezuelan oil in the US Strategic Petroleum Reserve, although Trump did not confirm that option.
US Interior Secretary Doug Burgum said increased Venezuelan heavy crude supply to US Gulf Coast refineries would boost job security, lower fuel prices and support Venezuela’s economic recovery.
Before US sanctions were imposed, Gulf Coast refineries imported about 500,000 barrels per day of Venezuelan crude, which they are well-equipped to process.
Industry sources warn that without sustained export routes, PDVSA would be forced into further production cuts due to storage constraints.
Oil traders reacted swiftly to the deal, with price differentials for heavy crude grades on the US Gulf Coast slipping by about 50 cents per barrel amid expectations of increased supply.
