English
English
English
US President Donald Trump announced a major energy deal with Venezuela under which the United States will purchase 50 million barrels of crude oil worth about $5.2 billion. Trump said the proposal came from Venezuelan authorities facing storage issues.
Trump Confirms Venezuela Oil Purchase Amid Political Shift
Washington: US President Donald Trump made a major statement on Friday, saying that the United States has agreed to purchase 50 million barrels of crude oil from Venezuela. The total value of this deal is estimated to be around US$5.2 billion. According to Trump, this proposal came from Venezuela itself, as there was no storage space left for the oil there and it needed to be refined immediately.
At an event to rename Southern Boulevard in New York to "Donald J. Trump Boulevard," Trump said, "The Venezuelan rulers are talking to us. They said they have 50 million barrels of oil that need to be processed immediately. Will the US buy it? I said, 'Yes, we will.'"
Trump receives Nobel medal from Machado; Can a prize be transferred?
Trump also said that the US's relationship with the interim government of Venezuela, formed after the arrest of former President Nicolas Maduro, has significantly improved. He said that these relations have reduced political and economic pressure in the region. He also openly praised the cooperation with the interim president and his team.
Information regarding this deal had already appeared in the media. A report by the New York-based news platform Semafor claimed that the US had already purchased the first batch of oil from Venezuela, worth $500 million. Trump's recent statement confirmed this report.
According to Semafor, proceeds from oil sales are currently being deposited in bank accounts controlled by the US government. According to a senior administration official, the main account is located in Qatar. Meanwhile, a CNN report states that Venezuela has the world's largest crude oil reserves.
Iran halts 800 executions after Trump warning; Claims White House
According to the US Energy Information Administration, Venezuela has approximately 303 billion barrels of crude oil reserves, representing approximately one-fifth of global oil reserves. Trump has already indicated that he would encourage US oil companies to invest billions of dollars in Venezuela's dilapidated oil infrastructure.
According to experts, this deal is important for the United States in terms of energy security, while it could provide economic relief to Venezuela. Furthermore, this deal is also seen as a strategy to increase US influence in Latin America.
