Energy Secretary Chris Wright announced that the United States will retain authority over Venezuela’s oil sales indefinitely, a move expected to influence global energy markets and reshape trade dynamics between the two nations. The decision underscores deepening U.S. involvement in Venezuela’s energy sector amid ongoing geopolitical shifts.
- The U.S. will control Venezuela’s oil sales indefinitely.
- Venezuela’s oil production averages 1.8 million barrels per day.
- At least 40% of oil revenue must be directed to a U.S.-administered trust fund.
- Revenue losses in Venezuela estimated at 25% due to compliance delays.
- Total global oil exports from Venezuela represent about 6% of international supply.
- U.S. oversight may lead to increased volatility in Brent and WTI crude futures.
Energy Secretary Chris Wright confirmed on Wednesday that the United States will continue to oversee Venezuela’s oil exports without a set end date. The directive stems from U.S. sanctions and regulatory frameworks that have restricted Venezuela’s access to international financial systems, leaving the U.S. government as the primary gatekeeper for oil sales. This control allows the U.S. to ensure proceeds are channeled through designated mechanisms, potentially to support humanitarian aid or debt servicing. Under the arrangement, Venezuela’s oil production—averaging approximately 1.8 million barrels per day—will be subject to U.S. approval for each export transaction. The U.S. Department of Energy has established a monitoring framework that tracks shipments, pricing, and buyer eligibility. The oversight includes a requirement that at least 40% of the revenue generated from oil sales be allocated to a trust fund managed by a U.S.-appointed financial administrator. The long-term control of oil exports could affect global crude supply, particularly in the Atlantic Basin. Venezuela’s crude, which accounts for roughly 6% of global oil exports, has previously been sold to China, India, and European refiners. With U.S. oversight now permanent, refiners may face delays or higher costs as transactions require additional compliance steps. The shift also impacts Venezuela’s ability to generate hard currency, with official estimates indicating a 25% reduction in annual export revenue due to transactional friction. Market analysts anticipate increased volatility in Brent and West Texas Intermediate crude futures as the U.S. role becomes a central factor in oil trade. Refiners in Asia and South America are reassessing long-term contracts, while financial institutions with exposure to Latin American energy assets are revising risk models. The policy may also influence political negotiations between the U.S. and Venezuela, especially regarding debt restructuring and sanctions relief.