Venezuela Oil Deal May Stall Gas Price Relief

President Donald Trump's announcement of a deal to access Venezuela's oil reserves has sparked speculation about lower gas prices, but experts say relief may be a long way off. The agreement would give the US an effective 55% output of a new Venezuelan oil venture through equity and oil purchased at cost.

Venezuela holds some of the world's largest oil reserves, with an estimated 303 billion barrels of crude, about 17% of the global total, according to the U.S. Energy Information Administration. However, Patrick De Haan, head of petroleum analysis at GasBuddy, warns that extracting and transporting this oil would take considerable time.

De Haan explained that several developments would need to occur before additional Venezuelan oil could translate into lower gasoline prices. Substantial investment would be required to expand production, and global refining capacity would also need to increase.

The national average price for a gallon of regular gasoline stands at about $4.09, according to the American Automobile Association (AAA). While Trump repeatedly highlights energy prices as a key economic issue ahead of the November midterms, De Haan cautioned that oil production and gasoline prices do not move in lockstep.