Key Points
- Global oil prices fell after the U.S. announced a deal to import Venezuelan crude.
- The deal involves diverting oil originally destined for China, which has denounced the U.S. as a “bully.”
- The agreement follows the capture of Venezuelan President Nicolás Maduro by U.S. Special Forces.
- President Trump said he will personally oversee the funds from oil sales.
Global oil prices fell on Wednesday after the Trump administration announced a deal to import up to $2 billion worth of sanctioned crude from Venezuela. The agreement, which involves diverting oil supplies originally bound for China, is part of a larger U.S. plan to take control of the South American nation’s vast oil reserves following the dramatic capture of President Nicolás Maduro over the weekend.
China, Venezuela’s top oil buyer, immediately denounced the move, calling the U.S. a “bully” for using force and demanding an “America First” policy on another country’s resources. “These actions seriously violate international law, gravely infringe upon Venezuela’s sovereignty, and severely damage the rights of the Venezuelan people,” a Chinese foreign ministry spokesperson said.
The deal will see the U.S. refine and sell up to 50 million barrels of crude that were stuck in Venezuela under a U.S. blockade. President Trump posted on social media that he would personally control the money from the sales to ensure it benefits the people of both Venezuela and the United States.
The capture of Maduro, who was taken by U.S. Special Forces in a helicopter raid on Saturday, has sent shockwaves through the international community. While the U.S. has not reported any casualties, Venezuela and its ally Cuba have acknowledged dozens of deaths among their security forces. Maduro has since pleaded not guilty to drug charges in a Manhattan court.
The Trump administration is now working with Maduro’s former allies, including interim President Delcy Rodriguez, to stabilize the country and revive its oil sector. The U.S. is pressuring them to cooperate, with the threat of sharing Maduro’s fate if they don’t.
While this new supply of Venezuelan oil is expected to be a boon for the U.S. and a blow to China and Russia, the unprecedented seizure of a foreign leader has left many of Washington’s allies deeply uneasy.
