Venezuela is set to export up to $2 billion worth of crude oil to the United States, marking a significant shift in its oil trade and a potential challenge to China’s long-standing role as the country’s top buyer.

The agreement, announced by former US President Donald Trump, will allow Venezuelan oil to be shipped directly to US ports at market prices. The move comes amid ongoing US pressure on Venezuela’s government to open its oil sector to American companies.

Trump emphasized that the funds generated from the deal would be used to benefit both Venezuela and the United States.
Under the deal, between 30 and 50 million barrels of oil currently held in tankers and storage tanks will be redirected to the US.

This oil had been unable to leave the country due to a US-imposed export blockade that began in mid-December. Supplying these barrels to the US could involve rerouting shipments initially destined for China.

The arrangement follows escalating tensions between the US and Venezuelan leadership. Earlier this week, US forces captured Venezuelan President Nicolas Maduro, an act Venezuelan officials have labeled a kidnapping.

The US has maintained that access to Venezuela’s oil industry is crucial, and Chevron remains the primary company currently authorized to handle the oil under US sanctions.

Following the announcement, US crude prices dropped by over 1.5 percent, reflecting the expected increase in supply from Venezuela. Venezuelan authorities and state oil company PDVSA have yet to comment on the deal.