Trump: Venezuela will deposit 30 million to 50 million barrels of oil to the US

JAKARTA - US President Donald Trump said that Venezuela would hand over 30 million-50 million barrels of oil to the US. He will also sell at market prices and the results are controlled by the US.

"Venezuela will hand over between 30 and 50 million barrels of 'sanctioned oil' to the US," Trump said in a social media post.

Meanwhile, US Energy Minister Chris Wright has been tasked with implementing the plan immediately. Later, the crude oil will be transported by storage vessels and brought directly to loading and unloading docks in the US.

Launching CNN, a senior government official, speaking on condition of anonymity, said the oil had been produced and put into barrels. Most of the oil is currently on board and will be sent to US facilities in the Gulf for purification.

While 30 to 50 million barrels of oil sounds like a lot, the United States only consumed a little over 20 million barrels of oil per day last month.

The amount may slightly lower the price of oil, but it is unlikely to significantly lower the price of gasoline for Americans.

US crude prices fell as much as $1 a barrel, or less than 2 percent, to $56 a barrel after Trump made the announcement on Truth Social.

Selling up to 50 million barrels could generate a substantial income. Venezuelan oil is currently trading at $55 a barrel.

So, if the United States can find a buyer willing to pay market prices, they could earn between 1.65 billion US dollars and 2.75 billion US dollars from the sale.

Venezuela has been stockpiling significant crude oil reserves since the United States began its oil embargo late last year. However, handing over that much oil to the United States could deplete Venezuela's own oil reserves.

The oil almost certainly came from onshore storage and some of the seized tankers that were carrying the oil. The country has storage capacity of about 48 million barrels and is nearly full, according to Phil Flynn, a senior market analyst at Price Futures Group. The tankers were carrying about 15 million to 22 million barrels of oil, according to industry estimates.

It is not clear how long Venezuela will hand over the oil to the United States.

Senior government officials said the transfer would happen quickly because Venezuelan crude is very heavy, meaning it cannot be stored for long.