Venezuela appears to be responding to demands from the United States for greater access for American oil companies, potentially diverting significant crude supplies away from China. Former President Donald Trump claimed online that Venezuela would be turning over $2 billion worth of Venezuelan crude to the United States.

According to Trump, the oil would be sold at market price, with the proceeds controlled by him, as President of the United States, to ensure the funds benefit both the Venezuelan and American people. As of yet, Venezuelan government officials and state-owned oil company PDVSA have not commented on the alleged agreement.

This development occurs against a backdrop of existing tensions and sanctions. Venezuela currently holds millions of barrels of oil in tankers and storage, unable to ship them due to a blockade imposed by the Trump administration. This blockade was part of a broader pressure campaign that culminated in the removal of Nicolás Maduro from power by US forces.

Venezuelan officials have strongly condemned Maduro's capture, labeling it a kidnapping and accusing the US of attempting to seize the country's vast oil reserves. However, this purported agreement suggests a shift in Venezuela's stance, potentially indicating a willingness to engage with US demands to avoid further military intervention.

The potential influx of Venezuelan crude into the US market could have several implications. It could alleviate some pressure on global oil prices, particularly if the diverted supply from China is substantial. The move could also reshape trade dynamics in the oil market, potentially impacting other oil-producing nations. The long-term impact will depend on the details of the agreement, including the volume of oil involved, the pricing mechanism, and the specific terms of US control over the revenue.