U.S. plans to control proceeds of sales of sanctioned Venezuelan oil
The U.S. has imposed a “quarantine” on Venezuelan oil in recent weeks, and American forces seized another oil tanker linked to the country on Friday, the fifth ship commandeered in the campaign. Rubio said this week that the quarantine gives the U.S. “tremendous leverage” over Venezuela and that the U.S. will soon begin selling up to 50 million barrels of sanctioned oil on the open market. The U.S., Rubio said, will control the proceeds.
Since Venezuela nationalized its oil industry during Hugo Chávez’s regime, Chevron has been the only major U.S. oil company with a presence there. It remains unclear whether any other firms plan to enter the market imminently.
Some experts say drawing in foreign investment could take years due to a combination of high costs, political instability and a history of the Venezuelan government nationalizing oil assets. And Venezuelan crude oil tends to be heavy and tough to refine, though some refineries on the Gulf Coast are equipped to process it.
How the White House says the oil sales will work
Earlier this week, White House press secretary Karoline Leavitt explained how the oil sales would work.
Mr. Trump has said Venezuela will turn over 30 million to 50 million barrels to the U.S. to be sold at market value. Proceeds from the sale of Venezuelan oil products will go to both Americans and Venezuelans “at the discretion of the United States government,” she said.
“The interim authorities have agreed to release that oil to the United States, so it will be arriving here at home very soon,” Leavitt said. “The United States government has already begun marketing Venezuelan crude oil in the global marketplace for the benefit of the United States, engaged the world’s leading commodity marketers, key banks to execute and provide financial support for these crude oil and crude product sales.”
“All proceeds from the sale of Venezuelan crude oil and products will first settle in U.S.-controlled accounts at globally recognized banks to guarantee the legitimacy and integrity of the ultimate distribution of proceeds,” she continued. “And those funds will be dispersed for the benefit of the American people and the Venezuelan people at the discretion of the United States government.”
Meeting comes after Trump said he called off “second wave of attacks” on Venezuela
Just after 4 a.m. this morning, the president announced on Truth Social that he has “cancelled the previously expected second Wave of Attacks” on Venezuela, at least for now.
The president cited apparent cooperation from the country’s new regime, which he said is “releasing large numbers of political prisoners as a sign of ‘Seeking Peace.'”
Still, he said, “all ships will stay in place for safety and security purposes.”
Trump apologizes to oil execs that more can’t join meeting
Writing on Truth Social ahead of the meeting, the president said it’s “too bad” the ballroom he’s building isn’t finished yet “because, if it were, it would be PACKED.”
“We apologize to those Oil Companies that we cannot take today, but Secretary of Energy Chris Wright, and Secretary of the Interior Doug Burgum, will see them over the next week,” he wrote. “Everyone is in daily contact. Today’s meeting will almost exclusively be a discussion on Venezuelan Oil, and our longterm relationship with Venezuela, its Security, and People.”
“A very big factor in this involvement will be the reduction of Oil Prices for the American People,” he added. “Additionally, and perhaps most importantly of all, will be the stoppage of Drugs and Criminals coming into the United States of America. Thank you for your attention to this matter!”
