Donald Trump reportedly devised a plan to leverage Venezuela's extensive crude oil reserves to manipulate U.S. oil prices, aiming for a target of $50 per barrel. The strategy, as reported by the Wall Street Journal citing senior administration officials, involved increasing crude production from Venezuelan oilfields to drive down the U.S. oil price from its current level of over $56 a barrel.

The initiative was intended to reduce energy costs for American consumers. A key component of the plan stipulated that Venezuela would be required to use profits from any oil sales to the U.S. exclusively to purchase American-made goods.

The prospect of increased Venezuelan oil production introduces further volatility into global oil markets, which have already experienced significant losses due to an oversupply of crude in recent years. Prices had already slumped by almost 20%. The potential influx of Venezuelan crude could exacerbate this oversupply, placing further downward pressure on global benchmark prices.

Venezuela holds some of the largest proven oil reserves in the world, but its oil industry has suffered from years of mismanagement, underinvestment, and political instability. Production has plummeted, significantly impacting the country's economy. A deal with the U.S., contingent on political factors, could potentially revitalize Venezuela's oil sector, but would also make it heavily reliant on the U.S. market.

The success of this plan hinges on several factors, including the political stability within Venezuela, the ability to significantly increase oil production, and the willingness of Venezuela to adhere to the condition of purchasing only U.S.-made goods. The long-term impact on global oil markets remains uncertain, dependent on the scale of Venezuelan production and the response from other major oil-producing nations.