The Trump administration is asserting control over Venezuelan oil, after seizing a pair of sanctioned tankers on Wednesday<\/b>
\nThe Trump administration is asserting control over Venezuelan oil, after seizing a pair of sanctioned tankers on Wednesday
Venezuela\u2019s interim president, Delcy Rodr\u00edguez, has defended plans to open up her country\u2019s oil market to Washington, as Donald Trump\u2019s vice-president JD Vance reiterated that the US would have complete control of the country\u2019s supplies.
Rodr\u00edguez said on Wednesday that America\u2019s attack to remove her predecessor, Nicol\u00e1s Maduro, put a \u201cstain\u201d on the countries\u2019 relations, but added it was \u201cnot unusual or irregular\u201d to trade with the US, adding that Venezuela was \u201copen to energy relations where all parties benefit.\u201d
Trump\u2019s administration has sought to assert its control over Venezuelan oil, seizing a pair of sanctioned tankers on Wednesday, while announcing it would manage all sales of future crude production and oversee the sale of the country\u2019s petroleum worldwide.
\u201cWe\u2019re going to market the crude coming out of Venezuela,\u201d US energy secretary, Chris Wright, said. \u201cFirst this backed-up store of oil, and then indefinitely going forward we will sell the production that comes out of Venezuela in the marketplace.\u201d
In an interview on Fox News, Vance said Venezuela would only be able to sell its oil if it serves the interests of the US.
\u201cWe control the energy resources, and we tell the regime, you\u2019re allowed to sell the oil so long as you serve America\u2019s national interest, you\u2019re not allowed to sell it if you can\u2019t serve America\u2019s national interest,\u201d Vance said.
On Tuesday, Trump announced a deal to access to up to $2bn worth of Venezuelan crude, a sign that the Venezuelan government officials are responding to Trump\u2019s demand that they open up to US oil companies or risk more military intervention.
On top of the ongoing embargo on Venezuelan oil, the US energy department has said the \u201conly oil transported in and out of Venezuela\u201d will be through approved channels consistent with US law and national security interests.
That level of control over the world\u2019s largest proven reserves of crude oil could give the Trump administration a broader hold on oil supplies globally in ways that could enable it to influence prices. Since the American military\u2019s capture of Nicol\u00e1s Maduro, Trump has continued to pledge that the US will \u201crun\u201d the country, despite push back from Rodr\u00edguez.
On Wednesday, Trump said that Venezuela would only buy US-made products with the profits it makes from any deal it strikes with Washington to sell oil.
\u201cI have just been informed that Venezuela is going to be purchasing ONLY American Made Products, with the money they receive from our new Oil Deal,\u201d the president said in a social media post.
Trump is scheduled to meet with the heads of major oil companies at the White House on Friday to discuss ways of raising Venezuela\u2019s oil production. But according to reports, US oil companies are pushing for \u201cserious guarantees\u201d from Washington before they make large investments in Venezuela.
The Financial Times reported that oil executives are expected to press the president on providing strong legal and financial guarantees before they agree to commit capital to Venezuela. US officials have in recent weeks told US oil executives that they will need to return to Venezuela quickly and invest significant capital in the country to revive the damaged oil industry, Reuters reported earlier this week.<\/p>\n