Venezuela Oil Deal Sparks Confusion as Prices Rise
US President Donald Trump announced that his administration secured majority control of over 65 billion barrels of Venezuelan oil reserves, calling it the biggest oil deal in history. The agreement grants a private venture a 100-year lease on 17 Venezuelan oil fields, with the US holding a 55% stake.
The deal promises to draw more than $100 billion in investment, according to Interim President Delcy Rodriguez. However, experts caution that none of this oil is flowing yet, and Venezuela's current output is around 1 million barrels per day, down from over 3 million in the late 1990s.
Brent crude prices actually rose from $88 to $90.48 after the announcement, defying expectations of a supply boost. Patrick De Haan, head of petroleum analysis at GasBuddy, said 'While the hope of lower gas prices sounds promising, it still will take billions of investment to get that oil.'