Full story
Venezuela Oil Deal
President Donald Trump said the United States will take majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private business.
“Trump wrote on social media on Sunday that he plans to fill up the nation's Strategic Petroleum Reserve using Venezuelan oil”
Trump wrote on Truth Social that he plans to fill up the nation's Strategic Petroleum Reserve using Venezuelan oil, calling the “topping out” process “a Gift from Venezuela to the People of the United States.”
The deal is described as involving 17 strategic oil fields, with interim President Delcy Rodriguez saying it will develop “17 strategic oilfields” with a production target of “more than 1.5 million barrels per day.”
Newsweek reported that a U.S. official said Rodriguez granted a private company a 100-year concession to fields holding 63 billion barrels of proven reserves, potentially making it “the world's second-largest corporate holder after Saudi Aramco.”
Rubio, Rodriguez, and Disputes
Marco Rubio called the arrangement “a huge win for both the American and Venezuelan people,” posting that it would bring “nearly $100 billion in private investment” and help lower gasoline prices in the United States.
Rodriguez celebrated the agreement as “historic,” saying it will help revive Venezuela’s economy over the 25 years it will remain in effect and that it will not threaten sovereignty over natural resources.
Al Jazeera’s explainer quoted oil market researcher Rory Johnston saying, “The 65 billion barrel number is a red herring and will have little relevance to any actual deals.”
Reuters reported that Trump provided few details about the agreement’s structure, saying only that the U.S. secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private business.
Gas Prices and Strategic Reserve
The deal is being framed as a response to U.S. fuel costs, with Newsweek citing AAA saying the national average price for a gallon of regular gasoline stands at about $4.07 as of Sunday.
“the national average price for a gallon of regular gasoline stands at about $4.07”
AAA said August 2026 is set to become the most expensive August on record for drivers, with the national average staying above $4 per gallon every single day, and Newsweek tied elevated prices to volatility in global oil markets including uncertainty surrounding the Strait of Hormuz.
Reuters said the U.S. push bets American companies can revive Venezuela’s energy industry while delivering a new source of crude to help bring down U.S. fuel prices, but it also noted that Trump did not disclose the structure of the agreement or how the United States would exercise majority control.
Al Jazeera added that the emergency stockpile is shrinking, with only 289.7 million barrels in storage facilities designed to hold up to 714 million barrels, and said Trump indicated the deal would help restore U.S. oil reserves hit to their lowest levels since 1982.