OIL
By Olayiwola Mercy
Oil prices are extending losses after US President Donald Trump announced that Venezuela will supply millions of barrels of oil to the US, causing global prices to drop. Brent futures slipped toward $60 a barrel, while West Texas Intermediate (WTI) declined over 1%. This move is expected to increase supply and pressure prices.
Trump stated that the Interim Authorities in Venezuela will turn over 30 to 50 million barrels of high-quality, sanctioned oil to the US, with proceeds controlled by him to benefit Venezuela and the US. However, analysts warn that rebuilding Venezuela’s oil infrastructure will require significant investment and time.
The US has imposed an oil embargo on Venezuela, and Chevron is currently the only US company operating in the country. Venezuela’s oil exports to Asia have been stalled due to the US blockade, affecting the country’s economy.
Venezuela holds the largest proven crude reserves on the planet, yet roughly 50% of its citizens live in poverty. The administration and economists say restoring Venezuela’s oil sector through cooperation with the US could produce clear benefits for both countries.
The US is pressuring the interim Venezuelan government to expel official advisers from China, Russia, Cuba, and Iran. Trump has suggested the US would help rebuild Venezuela’s oil infrastructure to benefit oil majors like Exxon Mobil, ConocoPhillips, and Chevron Corp .
