Trump Secures Control of Venezuela's Oil Reserves

The Trump administration has announced a deal to take control of over 65 billion barrels of Venezuela's proven oil reserves, in an unprecedented move that could bring down American fuel prices. The agreement, which was reached through negotiations with Venezuelan officials, would grant US companies long-term access to Venezuelan oilfields and guarantee the resulting crude supply to the US.

The deal is seen as a win-win for both countries, with Secretary of State Marco Rubio stating it would secure stable, low-cost oil for the United States and help lower gasoline prices. For Venezuela, the agreement is expected to bring in nearly $US100 billion ($A140 billion) in private investment, support thousands of high-paying jobs, and help rebuild the country's economy.

The US has been trying to secure a stable flow of Venezuelan crude for US refineries while promoting American investment in the country's oil industry since capturing and removing former President Nicolas Maduro from power in January. The Trump administration is under pressure ahead of midterm elections in November to mollify consumer concerns over rising gasoline prices.

Venezuela holds the world's largest proven oil reserves but produces only about 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement, and sanctions.