Trump announces ‘biggest oil deal in world history’ with Venezuela

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🗞️ Driving the news: US President Donald Trump says Washington has struck an agreement with Venezuela giving the US majority control over more than 65bn barrels of proven oil reserves, in what he described as the “biggest oil deal in world history”

🔭 The context: The agreement would dramatically expand US involvement in Venezuela’s oil sector, giving American companies long-term access to oilfields and directing resulting crude supplies toward the US
• Venezuela holds the world’s largest proven oil reserves but currently produces around 1.25m barrels per day after years of underinvestment, mismanagement and sanctions
• Venezuelan officials are expected to grant new exploration and production rights to companies, particularly US producers, although the precise legal and commercial structure has not yet been disclosed

🌍 Why it matters: The deal could reshape global energy flows by bringing more Venezuelan crude into US markets and potentially unlocking significant investment in one of the world’s most resource-rich but underdeveloped oil industries
• It also marks a major expansion of Washington’s strategic influence over Venezuela’s energy sector, while raising questions over how majority US control would operate under Venezuelan law

⏭️ What’s next: Venezuela is expected to sign agreements granting new oil rights as early as next week, while investors await details on participating companies, production-sharing arrangements and how quickly new capital could translate into higher output

📈 One stat: Trump says the agreement gives the US majority control over more than 65bn barrels of Venezuelan proven oil reserves

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