Trump Cuts Deal for Access to 65 Billion Barrels of Cheap Venezuelan Oil
US President Donald Trump announced on Friday that the country will have access to 65 billion barrels of Venezuelan oil under an agreement he claims will lower gas prices. The deal, which gives the US a 55% effective interest in the output of a new private company managing Venezuela's reserves, could make a significant dent in global energy markets.
The agreement comes as disruptions from the Iran war continue to drive up gasoline prices. Americans are currently paying an average of $4.08 per gallon for regular gas, a sharp increase from last year's price of $3.20. Trump predicted that gas prices will drop to $2.50 per gallon once the Strait of Hormuz is fully open.
The US won't immediately gain access to 35.75 billion barrels of oil under the deal, but it will have control over 17 Venezuelan fields covered by the agreement. The new company will allow American buyers to purchase Venezuelan oil at cost, which could lead to cheaper crude once production from the fields increases.