Trump says Venezuela will ‘only’ buy US products with revenue from the oil deal

The comments reflect the importance of crude oil to President Donald Trump’s strategy in Venezuela after US forces ousted the country’s leader, Nicolas Maduro, in an attack on the capital Caracas on Saturday.

“We need that influence and control over oil sales to drive the changes that need to happen in Venezuela,” US Energy Secretary Chris Wright said at the Goldman Sachs Energy, CleanTech & Utilities Conference in Miami.

He said the revenue would be used to stabilize the Venezuelan economy and ultimately to repay oil giants Exxon Mobil and ConocoPhillips for losses when their assets were nationalized by former President Hugo Chavez nearly two decades ago.

US Vice President JD Vance said that controlling Venezuelan oil means controlling the country.

“We control the energy resources and we say to the regime, ‘You can sell the oil as long as you can serve America’s national interest; you can’t sell it if you can’t serve America’s national interest,'” he told Fox News.

The British military yesterday supported the US seizure of a Russian-flagged oil tanker in the North Atlantic, the Ministry of Defense said.

The US has seized two Venezuela-linked oil tankers in the Atlantic Ocean, one of which flies a Russian flag called the Marinera, as part of President Donald Trump’s aggressive effort to dictate oil flows in America.

After capturing Venezuelan President Nicolas Maduro in a military raid on Caracas on Saturday, the US is escalating its blockade of sanctioned ships going to and from the South American country, which is a member of the OPEC oil producers group.

Britain’s Ministry of Defense said the US had asked Britain for help, and that RAF surveillance planes and a Royal Navy support ship, the RFA Tideforce, took part in the operation.

Defense Secretary John Healey said the action was “fully consistent with international law”, adding that Britain “will not stand by as malign activity increases on the high seas”.

Oil producer Chevron is in talks with the US government to extend a key license to operate in Venezuela so it can increase crude oil exports to its own refineries and sell to other buyers, according to a Reuters report.

The talks come as Washington and Caracas move forward in talks to supply up to 50 million barrels of Venezuelan oil to the US and President Donald Trump puts pressure on US oil companies to invest in the South American country’s energy sector.

U.S. officials said this week that proceeds from Venezuela’s oil supply, which is expected to help state energy company PDVSA drain supplies amid a severe oil blockade, will go to a U.S.-controlled trustee. The proceeds are intended to finance the delivery of American goods to Venezuela.

Chevron is the only U.S. oil company operating in Venezuela, which the company does with permission from the U.S. government, exempting the country from sanctions against the country.

As part of its campaign to tighten sanctions to weaken Venezuelan President Nicolas Maduro, the Trump administration imposed additional restrictions on Chevron’s license in July.

These restrictions have reduced the volume of Venezuelan crude the company exports to the US to around 100,000 barrels per day in December, compared to 250,000 barrels per day earlier this year.

The White House has said all proceeds from the sale of Venezuelan oil will be “settled” in US bank accounts to “ensure legitimacy” before being paid out to the South American nation.

“The United States government has already begun to release Venezuelan crude oil to the world market for the benefit of the United States,” White House press secretary Karoline Leavitt told reporters on Wednesday.

“All proceeds from the sale of Venezuelan crude oil and products will first be deposited into U.S. accounts at globally recognized banks to ensure the legitimacy and integrity of the final distribution of proceeds, and those funds will be disbursed for the benefit of the American people and the Venezuelan people at the discretion of the U.S. government.”

Venezuela could face violent instability following the shock capture of President Nicolas Maduro by the US military, experts warn.

While Maduro’s Vice President Delcy Rodriguez was quickly sworn in with US support, there are fears that a political vacuum will set the stage for a power struggle between multiple heavily armed factions that could lead to an uprising.

After ousting Venezuela’s president and taking control of the country’s vast oil reserves, President Donald Trump is floating the idea of ​​using taxpayer money to encourage U.S. oil companies to expand their operations there.

Since the military operation that led to the arrest of Nicolás Maduro and his wife, Trump has said he would like to see the “very large” US oil companies “spend billions of dollars” to fix Venezuela’s broken oil infrastructure.

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US Energy Secretary Chris Wright said on Wednesday that revenue from Venezuelan oil sales will first be used to stabilize the country’s economy before fossil fuel giants such as Exxon Mobil and ConocoPhillips are reimbursed for their losses there.

Exxon Mobil and ConocoPhillips were major producers in the country before their projects were nationalized by former President Hugo Chavez nearly two decades ago.

Oil prices fell again on Wednesday as investors digested Trump’s deal to import up to $2 billion of Venezuelan crude.

The move would increase supplies to the world’s largest oil consumer.

Brent crude futures fell 77 cents, or 1.3 percent, to trade at $59.94 a barrel by 1:58 p.m. EST (6:58 p.m. GMT), while US West Texas Intermediate crude fell $1.14, or 2 percent, to $55.99 a barrel.

Both benchmarks fell by more than $1 per barrel in the previous trading session, with market participants expecting ample global supply this year.

The Washington-Caracas deal would initially require the diversion of cargoes bound for China, sources said Reuters.