US-Venezuela Oil Deal Won't Lower Gas Prices Anytime Soon

The United States and Venezuela have struck a deal to give the U.S. a key role in Venezuela's oil industry, but it won't immediately lower domestic gasoline prices.

President Donald Trump announced the agreement on August 31, saying that while it will eventually benefit American consumers, 'will it happen before the election? I can't tell you that.'

The deal gives the U.S. a 35% ownership stake in the Venezuelan oil fields and guarantees the right to buy 20% of the produced oil without a price markup.

Oil experts say that even if the agreement is successful, it will take years for Venezuela's oil production to expand significantly, with some estimating it could be four to ten years before we see major benefits.