Trump: Venezuela to give 30-50 million barrels…. A one time shot which is virtually noting in a 100 million BPD Market

President Donald Trump late Tuesday said Venezuela will send the U.S. 30 million to 50 million barrels of oil, which will then be sold by the U.S. and the proceeds controlled by him. In a post on Truth Social, Trump said the interim authorities in Venezuela will “turn over” to the U.S. “high quality, sanctioned” oil. “This oil will be sold at its market price and that money will be controlled by me” to “ensure it is used to benefit the people of Venezuela and the United States,” he said. “I have asked Energy Secretary Chris Wright to execute this plan, immediately,” Trump added. “It will be taken by storage ships, and brought directly to unloading docks in the United States.” It is unclear how it would be legal for the president to control the proceeds of such a sale, as Congress generally appropriates funds as is mandated under the Constitution. There are also practical issues, such as shipping capacity and the immediate ability for U.S. refineries to process heavy Venezuelan crude. The White House did not immediately respond to a request for more details Venezuela has been producing around 1 million barrels of crude a day, so the deal would represent about one to two months’ production. It’s hard to gauge the market price for Venezuelan crude since it’s been sanctioned by the U.S. for years. Heavy crude is generally trading around the mid-$40 level, Tom Kloza, chief oil analyst for Gulf Oil, said  That’s “not exactly a stunning return,” he said.

The falling oil prices come “ostensibly as the markets position for the sort of positive supply shock that could come from liberating Venezuela’s oil reserves – albeit not for some time and without spending lots of money,” said Kyle Rodda, senior financial markets analyst at Capital.com.