US President Donald Trump said on Tuesday (January 6) that Venezuela’s interim authorities would hand over between 30 and 50 million barrels of oil to the United States, with the proceeds to be controlled by him as President.

In a post on his Truth Social platform, Trump stated that the oil would be sold at market prices and that the funds would be managed by the US administration to ensure they are used for the benefit of both the Venezuelan people and the United States.

Following the announcement, US crude prices fell by more than one per cent on Wednesday. West Texas Intermediate (WTI) crude dropped 88 cents, or 1.54 per cent, to US$56.25 a barrel by 1.14 a.m. GMT, extending losses after a 2.04 per cent decline on Tuesday.

Boosting oil production in Venezuela, which holds the world’s largest proven oil reserves, is a key objective for Trump after US forces seized Venezuelan leader Nicolas Maduro in a raid on Caracas over the weekend. Trump later said the United States would take control of the oil-producing nation, while confirming that the US embargo on Venezuelan oil remains in place.

Trump is also expected to meet oil industry executives at the White House later this week to discuss strategies to revive Venezuela’s struggling oil sector. However, analysts and industry experts remain sceptical about a rapid recovery, citing severely degraded infrastructure that would require billions of dollars and years of investment to rebuild.

They also note that Venezuela’s heavy crude is among the most expensive in the world to develop, as it requires specialised equipment to extract, transport and refine. Despite this, US administration officials have dismissed the concerns, arguing that the deployment of modern technology and new equipment could quickly increase production.