President Donald Trump revealed a landmark energy agreement Tuesday, stating that Venezuela will transfer 30 to 50 million barrels of its sanctioned crude oil to the United States for sale at prevailing market prices. The proceeds, potentially worth up to $2.8 billion, will support citizens in both nations under strict U.S. oversight.

In a Truth Social post, Trump directed Energy Secretary Chris Wright to expedite shipments from Venezuelan storage vessels directly to American facilities. This follows U.S. backing of Venezuelas interim government after Nicolas Maduros ouster, aiming to unlock the countrys vast reserves crippled by years of sanctions. Trump framed it as a win-win, freeing up floating oil stocks while feeding U.S. refineries optimized for Venezuelas heavy grades.

The announcement triggered a 1-2% drop in global benchmarks, with WTI crude slipping below $57 per barrel as supply fears eased. Analysts peg the volumes value at current prices around $55-60barrel, a boon for U.S. energy independence amid daily domestic production near 13.8 million barrels. However, experts caution that Venezuelas aging infrastructure could delay flows, tempering immediate impacts.

Top executives from Chevron, ExxonMobil, and ConocoPhillips are set to meet Trump Friday to discuss billions in potential investments reviving PDVSA fields. This aligns with broader goals to redirect Venezuelan exports from buyers like China, enhancing market stability without U.S. taxpayer funds. For consumers, steady supply could help curb gasoline prices over time. Developments will be tracked closely.

Disclaimer: This image is taken from al jazeera