BUSINESS

U.S. and Venezuela Reportedly Arrange Large Oil Transfers

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Washington, U.S. and Venezuelan officials engaged in discussions and, according to presidential statements on Jan. 6, announced a deal to export Venezuelan crude to U.S. refineries worth up to $2 billion. Reports cited diversion of cargoes from China, 30–50 million barrels held in tankers or storage, and coordination with U.S. oil firms. The move follows U.S. sanctions and an export blockade imposed in mid-December and would require logistical, legal, and commercial arrangements to execute deliveries. Based on 6 articles reviewed and supporting research.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

Mid-December: Reports indicate the U.S. imposed an export blockade and tightened sanctions on Venezuelan oil.
Jan. 6: Reuters-based reports state U.S. and Venezuelan officials discussed exporting Venezuelan crude to the U.S.
Jan. 6: President Trump publicly announced a deal reportedly worth up to $2 billion to export Venezuelan oil to the United States.
Jan. 6: Some outlets reported the oil involved could total between 30 and 50 million barrels held in tankers or storage.
Following reports: Coverage indicates U.S. officials and oil companies were coordinating logistics and access to process the crude.

Who Benefited

U.S. refiners and American oil companies would gain access to Venezuelan crude, potentially securing discounted feedstock, increased volumes for Gulf Coast refineries, and commercial revenue from sales and logistics associated with transporting and processing 30–50 million barrels reported in some accounts.