US President Donald Trump
Credit: Reuters photo
US President Donald Trump on Tuesday announced that Venezuela will be "turning over" 30 to 50 million barrels of sanctioned oil to the US.
In a post on Truth Social, Trump said, "This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States."
The president added that the oil would be taken from ships and would be directly sent to US ports.
Trump said that a deal has been formulated between the two countries in which Caracas will export up to $2 billion worth of crude oil to Washington, Reuters reported.
The negotiation is seen as diverting supplies from China and Venezuela avoiding oil production cuts.
Earlier, Trump had said he wanted interim President Delcy Rodriguez to give US and private companies "total access" to Venezuelan oil industry. Latin American country 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.
This blockage was a part of US pressure on the Venezuelan government headed by President Nicolas Maduro that ended in US forces capturing the self proclaimed leader on January 3.
On Tuesday, US Interior Secretary Doug Burgum said that an increased oil flow from Venezuela would "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," Burgum told Fox News, adding that the South American country can be transformed with "American technology and American partnership".
(With inputs from Reuters)