US President Donald Trump said on Tuesday night that Venezuela will hand over between 30 million and 50 million barrels of oil to the United States. Washington will sell the oil at market prices and manage the money earned from those sales.

In a post on Truth Social, Trump said Venezuela’s interim authorities would transfer what he described as “sanctioned oil.” He added that the revenue would be used “to benefit the people of Venezuela and the United States!”

US to Control Oil Sales and Proceeds

Trump said he has instructed Energy Secretary Chris Wright to “execute this plan, immediately.” He explained that the oil “will be taken by storage ships, and brought directly to unloading docks in the United States.”

The president also said that the money raised from selling the Venezuelan oil will be “controlled by him.”

A senior US administration official said the oil has already been produced and placed into barrels. Most of it is currently on ships and will be sent to refining facilities along the US Gulf Coast.

Limited Impact on Fuel Prices Expected

Although the volume of oil involved is large, analysts expect only a limited impact on US fuel prices. The United States consumes just over 20 million barrels of oil per day, meaning the shipment represents only a small share of overall demand.

In comparison, former President Joe Biden released about 180 million barrels from the Strategic Petroleum Reserve in 2022. That release was several times larger and lowered gasoline prices by only 13 to 31 cents per gallon over four months.

Shortly after Trump’s announcement, US oil prices dropped by around $1 per barrel, or just under 2 per cent, to about $56.

Potential Revenue Runs Into Billions

At current market rates, selling up to 50 million barrels could bring in significant revenue. Venezuelan crude is trading at roughly $55 per barrel. Based on those prices, total earnings could range from about $1.65 billion to $2.75 billion if sold at full market value.

Questions Over Oil Source and Delivery Timeline

Venezuela has built up large oil stockpiles since the United States imposed an oil embargo late last year. Moving such a large volume of crude to the US would sharply reduce those reserves.

The oil is expected to come from both onshore storage facilities and seized tankers that were previously transporting crude. Venezuela has about 48 million barrels of storage capacity and was close to full. Industry estimates suggest seized tankers were carrying between 15 million and 22 million barrels.

It is still unclear how quickly the oil will be delivered. A senior US official said the transfer would happen fast because Venezuelan crude is very heavy and cannot be stored for long periods.