U.S. President Donald Trump and his administration is planning an elaborate initiative to control the Venezuelan oil industry for years, with a target of lowering oil prices to his target of $50 a barrel, the Wall Street Journal reported on Thursday.
The Trump administration is considering exerting some control over Venezuela’s state-run oil company, Petróleos de Venezuela SA, or PdVSA, the report said. Trump reportedly told his aides that the efforts could help bring oil prices to $50 a barrel.
Unlock more breaking news on oil and U.S. policy by upgrading to InvestingPro
If successful, Trump’s plan could give the U.S. control of a bulk of supplies in the Western Hemisphere, while also curtailing a key source of crude for China. Trump has also targeted bringing down energy prices to curb inflation and win more favor with voters.
Trump on Tuesday said Venezuela agreed to turn over between 30 and 50 million barrels of oil to the U.S., with revenue from the sale of the oil to be controlled by Washington. This came just days after the U.S. military launched an incursion into Venezuela, which resulted in the capture of President Nicolas Maduro.
Trump had then signaled that Washington will control Venezuela’s oil industry, and invited a host of U.S. energy majors to invest in the country. Chief among these is Chevron, which is the only U.S. energy firm to have operations in the sanctioned Latin American country.
Oil prices had tumbled in the wake of the U.S. incursion, as markets feared that an opening up of Venezuela’s oil reserves would unlock even more global supplies, adding to concerns over a supply glut in 2026.
Source: Investing