President Donald Trump announced a historic oil agreement with Venezuela to grant the U.S. majority control over 65 billion barrels of proven reserves. The deal operates through partnerships with private companies and was negotiated by U.S. Secretary of State Marco Rubio and Venezuelan interim President Delcy Rodríguez.
Venezuela is reportedly considering an exit from OPEC following the UAE's departure in early 2026. This move challenges the cartel's unity while aiming to increase supply to U.S. refineries. The agreement seeks to lower high domestic gasoline prices that have pressured the current administration.
Market reactions remained muted as Brent and WTI futures fell slightly following the news. Traders are weighing the increased supply against the ongoing situation in the Strait of Hormuz. The deal may significantly impact China by threatening its crude supply as Washington redirects oil flows through U.S.-linked channels.