Trump's Venezuela Oil Deal Sparks Skepticism Over Gas Price Relief

US President Donald Trump announced a historic oil deal with Venezuela, claiming it would more than double American oil reserves and increase supply while substantially lowering gas prices for all Americans. The deal involves securing Venezuelan crude through a partnership with private business to replenish the US Strategic Petroleum Reserve.

The agreement was touted as 'THE BIGGEST OIL DEAL IN WORLD HISTORY,' but analysts are cautioning that relief at the pump is unlikely to materialize anytime soon. According to analyst De Haan, it would take 'billions of investment' to source oil from Venezuela and drill/pump the estimated 65 billion barrels of crude.

Venezuelan interim President Delcy Rodriguez said the country's energy agreement with the US will remain in effect for 25 years, with an initial goal of increasing crude production to more than 1.5 million barrels per day (bpd). The deal covers the development of 17 strategic oilfields and aims to preserve Venezuela's sovereignty over its natural resources.

However, De Haan pointed out that the global oil refining capacity is constrained, which means even with additional oil, it won't 'translate the lower oil prices in lower fuel prices.' He also questioned how the US can lay claim to a sovereign country's natural resources. Other analysts have raised concerns about the legal and financial basis for the US government's investment in Venezuelan resources under the South American country's constitutional framework.