US President Donald Trump announced Tuesday that Venezuela would hand over millions of barrels of crude oil to the United States.
Crude has seen huge swings since the US’s Trump advocated the overthrow of Nicolas Maduro, his Caracas counterpart, on Saturday, claiming Washington would rule the country while demanding “total access” to its primary resource.
“The Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION barrels of high-quality, sanctioned oil to the United States of America,” he wrote on his Truth Social platform.
“This oil will be sold at its market price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States.”
Analysts argue that the shipments reduced the chance that Caracas would be forced to reduce output due to limited storage capacity, alleviating supply concerns, but added that the commodity’s outlook was for lower prices.
This comes as the crude market remained well supplied after OPEC+ decided to increase supply.
Venezuela has almost one-fifth of the world’s oil reserves, but observers warned that a rapid increase in output would be hampered by a number of factors, including creaking infrastructure, low pricing, and political uncertainty.
Ousted Venezuelan President Nicholas Maduro pleaded not guilty to drug-related charges during his arraignment at a federal court in New York on Monday.
On January 3, United States forces captured Maduro and his wife, Cilia Flores, and indicted them on charges associating them with a narco-terrorism conspiracy.
His arraignment occurred while demonstrators both supporting and denouncing Maduro’s capture gathered outside a federal courthouse in New York on Monday.
The demonstrators were divided, with one group waving flags and signs supporting US President Donald Trump, while the other demanded Maduro’s freedom.
Supporters of Maduro’s freedom contended against US involvement, whereas opponents expressed optimism for Venezuela’s future without Maduro in charge.
The police barricade divided the demonstrators on both sides.
Several of those present were originally from Venezuela.
Maduro, 63, entered a not guilty plea to four criminal charges: narco-terrorism, conspiracy to import cocaine, and possession of machine guns and destructive devices.
“I am innocent. I am not guilty. I am a decent man. I am still president of my country,” Maduro said through an interpreter.
Maduro is alleged to have managed a cocaine smuggling operation that collaborated with violent factions, such as Mexico’s Sinaloa and Zetas cartels, Colombian FARC rebels, and Venezuela’s Tren de Aragua gang.
Maduro has consistently rejected the claims, asserting that they are a façade for imperialist intentions towards Venezuela’s abundant oil resources.
Cilia Flores, Maduro’s wife, similarly entered a not guilty plea during their initial court appearance in New York on Monday.
The case was adjourned to March 17.
