Venezuela Deal May Not Lower Gas Prices, Experts Warn

The Trump administration announced a deal with Venezuela to develop its vast oil reserves. Under the agreement, the U.S. would get 55% of the oil from the joint venture, equivalent to about 65 billion barrels of oil.

However, energy experts express skepticism about the deal's potential impact on gas prices. Paasha Mahdavi, an associate professor at UC Santa Barbara, said 'at cost' deals are not attractive in the industry because they limit companies' ability to make excess profits.

The legitimacy of the current Venezuelan government is also a concern, with some questioning whether acting President Delcy Rodríguez's administration is legitimate. Rodríguez came into office after former President Nicolás Maduro was arrested by the U.S. in January.